ICO’s may be turning into a thing of the past in 2018 as regulatory agencies continue the push for reform. Between the SEC and FINRA, expect many regulations in the US to be established in the next several months related to coin offerings. One will most likely be individuals will no longer be able to receive compensation for finding buyers of an ICO. On top of that, there will be a push for a more strict KYC compliance.
Capital raising through Bitcoin will not go away despite the possibility of ICO’s disappearing. Expect them to be rebranded as Tokenized Asset Offerings or TAO. This would be a much needed change as ICO’s have gained an unfavorable reputation with many due to scams that have come to light. These scams often are due to the lack of regulation, this would also change with TAO. This change would most likely come with help of agencies such as the SEC and FINRA to allow for more regulations, protecting investors and the issuing company.
If TAO does take off, expect for the wave of capital raising with blockchain surpass the 2017 numbers easily. It will push more companies to opt for this form of capital raising due to safety from regulations and a clear guideline of the process. TAO assets can be used for institutional trading too as they can create profit margins, volumes and volatility. This gives the ability for the market to become larger on top of just the offerings.
The capital created by these allow for young companies to make headway and for creative ideas to flourish. Entrepreneurs across the world will be able to find funding and work for a successful future through the funding of TAO.
