The term ICO became wildly popular in 2017 with new companies popping up everywhere. It seemed like every ICO promised to be a homerun winner and all had fancy branding and polished websites. Some of these ICOs turned out to be great investments. On the other hand, some turned out to be complete losers or even flat out scams.
One thing is for certain. The ICO landscape in 2018 has changed significantly and it will look nothing like it did back in the “good old days”. Here are 5 reasons why there may be a dramatic shift in the ICO landscape for 2019.
Regulation-
Government scrutiny of ICOs has intensified, especially in the United States. The SEC is starting to ask important questions of ICOs such as, “is your token a security, are your investor accredited, is there an existing use case for your token?” These questions are all designed to protect the investor. With government regulation, it becomes more difficult for new ICOs to comply with the law, however it encourages companies to take steps to protect the investor. In 2019, we will have a more defined set of rules for ICOs to follow as regulation becomes standardized across the board.
Better Options-
The quality of companies to invest in will dramatically increase, with many lower-tier scams dropping off. Part of this has to do with the stricter regulations, however another driving factor will be the competition in the space. In 2017, the blockchain market was still the wild west. New companies could stake their claim to an industry and be first to the market. In 2019, there will be multiple competitors in the space. As a wise man once said, “competition breeds success”. The competition will cause companies to focus money and resources on developing better products.
Smarter Investors-
With the rise of Bitcoin’s popularity at the end of 2017, it seemed like everyone and their mother was jumping into the crypto market. A lot of times these inexperienced investors had no idea what a block was as they were placing their hard earned funds in speculative investment. With mainstream coverage of cryptocurrency in 2018, several excellent knowledge resources have been established and anyone with a computer can go online and educate themselves about crypto. Also, having some failed ICOs and scam ICOs to use as examples will hopefully prevent people from falling for obvious scams or vaporware.
Institutional Money Interest-
One of the major roadblocks for growth in the crypto space has been the lack of institutional money. 2018 has seen companies like Coinbase building the infrastructure for institutions to feel comfortable investor sizable amounts in the crypto space. This development cannot be understated, as it will be the catalyst for “Wall Street funded” ICOs of a different scope and caliber. Be prepared for new leaders in industry to start sprouting up faster than usual with the backing of the big/smart money.
Ease of Access-
The process of participating in ICOs in 2017 was very cumbersome. One had to understand how an Ethereum smart contract operated, and get over the hurdle of buying Bitcoin from an unfamiliar exchange and transferring it via an internationally hosted website. 2018 has seen advancements in the ICO incubator space. The incubators are simplifying the process for connecting potential investors with companies. The rise of community management companies has also made it easier for companies to reach their target audience.
As the ICO landscape changes, I am excited to see the new innovations that 2019 has to offer. There are already companies out there that realize the changes going on behind the scenes and are well positioned to take advantage of them. One such company is Gemstra. Gemstra is in the early stages of planning their public sale, and this is one you definitely don’t want to miss.
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