Token based funding methods are attracting the attention of institutional investors slowly. The biggest potential for them is yet to come.
About Max KopsI am Max, excited about Blockchain technologies and real-world use-cases especially in financial fields. Analysing ICOs.
Looking at the token market, most of the tokens claim not to be securities or investment vehicles – mainly because they fear regulatory consequences. STOs, on the other hand, might be a solution for companies that want to raise capital without facing issues with financial authorities.
ICOs are supposed to offer a convenient method of fundraising – both for Blockchain platforms, but increasingly also for companies not related to Blockchain. Although, reality differs a lot from its idea.
We can see tendencies in the market that many ICO investments are overtaken by VCs. In my previous article, I outlined empirically, that ICO fundings outperformed early-stage VC investments. But it could be that the VCs put their money into ICOs themselves.
ICOs are having a tough time right now – only 23% of the projects actually reached their hard cap (maximum funding amount) in November 2017. Why is that?
ICOs mainly came out of their adherence to tech experts in early 2017. How did the method of raising funds develop in roughly one year till the first quarter of 2018? A quick overview.
I analyzed the regions where Tokensales were executed or are currently scheduled.
In many ICOs, Blockchain technologies just play a minor role – sometimes, they are not even necessary.
Most of the ICOs are focused on innovative concepts, dominantly in technological ways. What is the difference that makes an ICO to a gamechanger in the market or leaves it as a small, incremental innovation in the competitive surrounding?
To choose the right ICOs to invest in seems quite hard, considering the growing number of tokensales that arise every day. Surely, the team of a project plays an important role in the future success of it – though there are some methods which might create a wrong impression for you.