Top Five ICO Trends for 2019
Happy new year everyone! The first week of January is a great time to put on the prediction hats and gauge where the Initial Coin Offering (ICO) market is headed towards in 2019.
As we try shine the spotlight on trends which look to underline the ICO landscape in 2019, we can’t help but think that the market is evolving towards a mature phase — away from the crazy euphoria of 2017 and the muted investor sentiments in 2018. From that perspective, the token sale market may start to look more like traditional markets, underlined with its own unique characteristics, than just a wild, fledgling hype. That makes it such an exciting space to be in!
So, here’s what we think are the top five trends for ICOs in 2019:
Influx of Institutional Money
While whales have always been around in the market, 2019 should see a wave of institutional money come in. Many big players such as NYSE and NASDAQ are already building the infrastructure required for institutional investors to enter the market. The influx of institutional money will improve the credibility of the token sale market and offer more fund-raising capital to quality ICOs. The biggest ICO of 2018 — Telegram — saw investments from established venture capital firms such as Sequoia Capital and Benchmark and we will likely see more institutional money flowing in this year.
Regulated Global Markets
Institutional money is closely tied-in to regulations, and clear policies will only improve the investments coming in to this market. We have seen how countries like Japan and Thailand are laying the groundwork for a more progressive cryptocurrency regime. Many other countries like the U.S. and France are closely thinking about the path they need to take with cryptocurrencies and ICOs. We think that markets will thrive where the regulations are built for cryptocurrencies, instead of retrofitting them within the existing legal boundaries. That being said, increasing legal clarity should pave the way for more regulated and compliant token sales in 2019.
Initial Exchange Offerings (IEOs)
We saw glimpses of it in 2018, but we will likely see more such offerings in 2019. IEOs are like ICOs, but instead of the project trying to run their token sale all by themselves, they delegate it to a trustworthy exchange. Exchanges have strict KYC, AML and other compliance processes in place, which greatly decreases the probability of scam ICOs. In addition, it offers a simplified experience for investors who do not have to set up new accounts with multiple token issuers. Exchanges already have robust infrastructure in place and new ICOs can easily leverage it to launch their tokens successfully. The exchange also lists the token after the conclusion of the sale, providing liquidity and trading opportunities for investors. We helped many quality projects with token listing on the GBX Exchange last year, and we continue to see a lot of interest in the space for IEOs.
Security Token Offerings (STOs)
We remain highly optimistic about this fund-raising mechanism’s bullish potential. STOs will serve as the true bridge between traditional markets such as equities and the new token sale market. With STOs, companies can issue tokens which can represent shares, units of mutual funds or even ownership in a physical asset. One of the biggest questions in front of ICO issuers is whether their tokens classify as securities. STOs turn that question on its head by tokenising securities. We feel that regulators might be more willing to open up opportunities and be more comfortable with STOs. This may also give the rise to new platform wars as the incumbents battle it out to become the ‘Ethereum’ of the STO market.
Professional ICO Management Platforms
Most of the ICO projects have depended on traditional software to manage their token sale processes. ICOs have their own unique parameters and metrics which cannot be covered by legacy tools or spreadsheets. Token issuers require platforms that are built keeping the industry in mind. That’s why we launched T-Axis — a smart CRM for token sales — to simplify management of ICOs, before, during and after the sale process. We will see a lot more ICO management and analytics tools emerge specifically for the token sale industry in 2019.
What do you think about these trends? Do leave your comments below!
About ICOMain.io:
ICOMain.io is a full-service solutions provider for all the things needed to complete a successful ICO. Our comprehensive solutions are designed for companies looking to tap into the immense potential of blockchain and launch their ICO in the most efficient manner possible. Our team comprises of seasoned experts who have a wealth of experience in advising ICOs and is complemented by our cutting-edge technology infrastructure. We are dedicated to understanding their clients’ needs who may come from a diverse range of industries. We are also the first sponsor firm for the Gibraltar Blockchain Exchange (GBX) that aims to be a world-leading, institutional-grade token sale platform and cryptocurrency exchange.
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