The Future of the ICO Market

BrotherlyLend
Sep 5, 2018 · 3 min read
Future of ICO Market

What’s next for the ICO? Is this question coming into your mind again and again? Do you want to know is Initial Coin Offerings (ICOs) going the way of the dot-com bubble or not? Wait, wait!! We will answer each of your questions here. Just continue your reading to find a good answer to your questions.

There is no doubt ICOs have gained great popularity so quickly all over the world by utilizing the loopholes of the uncontrolled market and generated the major utility tokens. It is also true there are some fundamentally strong projects in current ICOs market, but an improvement is due in time. So it is expected that regulators will soon declare their guidelines and these loopholes will end soon. We can also expect the uncontrolled way of ICO will become limited in the future with real utility tokens.

Here is the expected dedicated future of the ICOs:

Sale of utility tokens: It is expected the sale of ICOs utility tokens will be ended in around 6–12 months.

 Scams: The biggest problem with ICOs is scams. Unfortunately, more than 1 Billion USD was lost to scams last year. There are too many scammers, too many greedy founders and unscrupulous advisors in the market who make food inexperienced investors. These scams have shaken the trust of retail investors in this industry.

 Hacks: Hacks are one of the biggest problems with this industry. The ICO industry is still in its infancy stage where many security hacks could take place and may not end very soon.

 Misalignment: Another big problem with ICOs is the misalignment of investors interests’ and founders’ interests. Reason for this is buying utility tokens doesn’t award any investor rights in the startup. That’s why the value of the utility token is decoupled from the success of the startup.

 Dot-com bubble Way: It is expected; the race of ICOs token investors will become very competitive like the dotcom bubble in March 2000. The expected token crash could be the beginning of a token economy. Just like the app economy and social networks get more attention after the crash of the dotcom bubble. So, we cannot say anything confidently.

 Utility Tokens Value: It is expected in future, the Utility Tokens Value will reach zero. So investors can think utility tokens will just like the pre-paid vouchers or non-real service or product.

The second wave of ICOs: The ICOs’ second wave probably get started by 2019 when the sale of equity tokens will give rights to the investors as a shareholder like a dividend participation, voting rights, reporting rights, exit, Pro-rata investment rights etc.

Unite the two worlds: It is also expected after many years two words

1)Venture Capital and 2) Blockchain may come together and unite the features of two worlds. For example from Venture Capital, “deal selection, deal structuring and due diligence by an experienced lead investor”. And from Blockchain,” scalability, transparency, security, fast and easy transactions of shares, increased liquidity etc”.

 Conclusion: ICO is a wonderful achievement, it allows for global crowdfunding for the project. This is sure the ICO is not going to end in future, but we can expect certain changes in ICOs. Its future use and working will be different in many ways, unlike the current utility token sales. At present, the industry seems pretty positive about the future of ICO.

The article was written by Sharmarke Mohamed Founder of BrotherlyLend is the new innovative and revolutionary secured lending platform which allows everyday people with investments in cryptocurrency to take out loans using cryptocurrency as secured assets.

BrotherlyLend

Written by

Brotherlylend is the new innovative and revolutionary secured lending platform, which allows everyday people with investments in cryptocurrency to take out loan

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