Will ICOs in 2018 be Completely Different than Those Today?
ICO’s have seen a rapid growth and evolution through the course of 2017. The landscape is continuing to change and has the possibility to look drastically different in 2018. Through October ICO’s raised over $2.5 billion which surpassed venture capital spending at that time. A lot of this ended up being returned due to soft caps not being met and a good portion was also stolen. Regulation has been put into place and continues to be updated so events like this happen less. Countries have been split with some outlawing ICO’s such as China while others like Japan have embraced ICO’s.
Many companies that issued ICO’s are getting nervous as they are acting as securities. This means they launched unauthorized financial products which could lead to many legal problems. This is creating a very hairy situation as many lawyers advised for founder to provide a disclaimer saying that these are not securities or financial products. This is leading to liability going towards the company which was not the desired effect. This also is due to many platforms that issue ICO’s worrying more about their bottom line than having a fair and legal transfer of money.
Marketing with ICO’s has been an advancing field. There has been a direct correlation between funds raised and how much is spent on marketing for that ICO. Marketing for ICO’s can prove challenging as firms must start early which they often don’t do. They must allow the marketing company to gain interest and followers and drive traffic to the ICO website which takes more time than what is usually given. Finding the target audience can prove a challenge as well due to most investors being anonymous.
As ICO’s continue to rise in expense, many of the issues with bad companies releasing ICO’s and not getting investors the returns they desire will start to slow. Companies with proven track records will start to be the only ones with the capital to launch a successful ICO. This would also allow tokens to be linked to a more tangible underlying asset so the value is fair and well maintained.