In this short series, I give a postmortem for the ICO / cryptocurrency market. It is not a postmortem for IdeaFeX for a simple reason, and it follows in spirit the points I have made in the Make Blockchain Work series: these analyses highlight the fact that the future of crypto assets must be backed by real-world assets.
So far in this series, I have shared my thoughts on the mounting difficulties in the ICO market and pointed to greed as the fundamental driver that has all but butchered the prospects for this innovative format with huge potentials in its infancy. No point in being evasive here: Yes, “cryptocurrency” is dead.
To be clear, I am not saying Bitcoin or the many related technologies will disappear. I am saying that “hype” will stop working as more and more speculators realize that they are not the only ones who do not believe in it — others that they are counting on buying these hypes feel the same. That is, in the game of “bigger fools”, one runs the risk of finding oneself the biggest fool of them all.
I am saying that “miracles” or projects built entirely on greed will die a slow but assured death, and that speculators will be the ones realizing that, unlike it is with other speculative assets, they are left with nothing but a string of numbers — until the miners are turned off and these numbers, too, disappear. This process will bring about a rebirth of legitimate use of distributed ledger technology and, I hope, broad adoption of some form of digital currency, perhaps Bitcoin.Ho
Naturally, the premier use case that I see is the tokenized of goods, services, and assets.
To be clear, not all goods and services can benefit from tokenization — only those that benefit from a decentralized ledger of transactions and, perhaps, some form of automated fulfillment services will.
Unlike “ICO” or “cryptocurrency”, tokenization of goods, services, and assets is a way to deliver goods and services better, rather than a pure form of financing. Learning from the lessons of cryptocurrencies, we should make every effort to curb greed: First, goods and services have clearly-defined values on earth, not the moon. Second, our exchange will be more like secondhand markets (think eBay), so there is no live ticker that misleads the users. Third, we will serve product futures only after our marketplace has sufficient traffic from traditional goods and services, and we will serve both tokenized and un-tokenized goods and services together. Thus, we give the marketplace sufficient time to grow itself with mature users in a safe environment. To know more, please read our White Paper.
This is what is happening:
· Phase 1 (September 2019): We launch the IdeaFeX marketplace for traditional goods and services only. Its use will be entirely free — think of it as a free version of Amazon or eBay. We will introduce sensible and low-cost advertising options for professionals.
· Phase 2 (TBD): We introduce tokenized goods and services (product futures). Highly competitive (compared to existing e-commerce) pricing schedule will be implemented. To fully appreciate this format, please read our White Paper.
Both traditional and tokenized goods and services will be supported simultaneously. Allowing both sellers and buyers flexibility at an unprecedented level.
· Phase 3 (one year after Phase 2 or when tokenized goods and services receive broad adoption): We will introduce tokenized assets.
We strongly encourage you to start using the IdeaFeX marketplace now, because we can truly grow together:
1. There is no cost in using IdeaFeX to sell or buy any traditional goods or services, unlike existing marketplaces where roughly 15% commission is charged.
2. Even our paid advertising options will be success-fee based. That is, you only pay after making a sell.
3. By supporting us and driving traffic to us, you help build the community that will enjoy tokenized goods and services: As sellers, you can integrate product futures (see our White Paper) into your business model. As buyers, you will enjoy a vastly superior consumption experience (and potentially save money or make some).
Going beyond cryptocurrency, let’s use blockchain technology to make buying and selling a more enjoyable experience!
IdeaFeX is the marketplace for tokenized real-world goods and assets. We are launching in September 2019 a first public trial. For more details about us, we encourage you to follow us on Medium and read our White Paper.
This series is an extension to the original ICO series that I have written months ago.