Five drivers of reactivation in the ICO market
Every day more and more pessimistic forecasts about the state of the encryption industry are appearing online. The experts indicate several reasons for this: the startups that have ICOs do not have finished products, growth in scams with crypto and a strengthening of the state regulation. However, the cryptographic world does not intend to renounce that easily. The ICO market also remains firm.
However, if you look more closely at the situation, you will see that the talk about the imminent demise of cryptocurrencies is greatly exaggerated.
- The market is in transition to a new phase of development
According to the IBRC data (ICOBox Blockchain Research Center) , since the beginning of the year the capitalization of the cryptocurrency market has been reduced almost three times, from $ 768 billion to $ 254 billion . However, when compared to the beginning of August of last year, market capitalization has doubled , which is clearly at odds with claims about its imminent ruin.
Also, if you look at the activity of the sponsors in the ICO market, the trend here is even more positive. According to the calculations of tokendata.io, Blockchain startups had 435 ICOs last year, and $ 5.6 billion was raised.
As reported by the British website coinschedule.com, in early August this year, the sponsors had participated in 706 ICOs and purchased tokens worth almost $ 18 billion. This turn of events bears little resemblance to a weakening of the financing trend.
IBRC analysts point to clear evidence of a new phase of development in the cryptocurrency market and ICO projects. The number of main sponsors ready to provide significant resources to the projects is growing.
For example, according to the estimates of the international consultancy PwC in early July of this year, the average amount collected by ICO increased to $ 25.5 million, which is twice the figure of 2017.
According to Nick Evdokimov, an international expert in the cryptocurrency market and founder of ICOBox , the ICO market is far from depleting its potential.
"We are at a very early stage of development, so it is ridiculous to say that the ship has been shipwrecked, or that the purchase of tokens is not so advantageous. On the contrary, this is only the beginning, "Evdokimov commented.
- The growing interest of traditional financial institutions in the cryptocurrency market
According to Evdokimov, the increase in the number of traditional financial institutions involved in the development of the cryptocurrency market is obviously also a positive sign. Goldman Sachs's recent announcement of the formation of a division for the cryptocurrency trade and its plans to launch a deposit service for the storage of tokens for institutional sponsors is a direct confirmation of this trend.
- The creation of sites regulated by the federal government for trading in bitcoin futures
An even more serious event took place in this market on August 3, when the Intercontinental Exchange (ICE) , the world's largest trading facility for financial instruments, announced the creation of the Bakkt joint venture. In November of this year, Bakkt will provide operators with a "federally regulated" platform for trading Bitcoin futures and a deposit service for cryptocurrency assets.
The partners of ICE are the Microsoft transnational companies , Boston Consulting Group, Starbucks , the main hedge funds, venture capital funds and funds specializing in cryptocurrency projects such as Pantera Capital and Protocol Ventures .
Aunque Starbucks anunció inmediatamente que su “Frappuccino® no puede comprarse directamente para bitcoins”, para todos los efectos la criptomoneda será aceptada para el pago después de la conversión a dólares estadounidenses en la plataforma Bakkt usando una aplicación especial que está siendo desarrollada por Starbucks.
- Los activos criptográficos comienzan a usarse como un vehículo de inversión
Sin embargo, la decisión de la US Securities and Exchange Commission (SEC) de listar el primer fondo cotizado de bitcoins (ETF) en Chicago Board Options Exchange (CBOE) podría tener el efecto más tangible, al menos en el corto y mediano plazo. Según algunas estimaciones, esta decisión se espera tan pronto como en septiembre, y muchos analistas creen que la decisión podría ser muy favorable.
Si esto sucede, el fondo se negociará en una bolsa que está completamente bajo la supervisión de los reguladores financieros de los EE. UU. Fue la falta de dicha supervisión lo que sirvió de base para que la SEC se haya negado a incluir un ETF similar a fines de julio de 2018.
The appearance of this fund in the market will probably give a powerful impulse to the development and use of cryptoactives as an investment vehicle. After all, currently retirement funds and insurance companies, key institutional investors, due to regulations do not have the right to place their money in cryptoassets .
Therefore, a favorable decision by the SEC would open the door to billions in potential financing and give startups an even stronger impetus to enter the ICO market and issue their own tokens.
- Interaction between startups and funds and the change to the widespread use of security tokens
Experts believe that the work of startups with funds is the most effective way to diversify the funding base and ensure the broadest possible recognition of tokens by retailers.
To this end, the tokens that will be offered to the sponsors must be clearly defined as useful tokens, necessary for the purchase of the startup's products or services and not subject to regulation, or as security tokens. In the latter case, they will be subject to the supervision of the financial regulators, which will make them legitimate in the eyes of the institutional sponsors.
"More and more ICOs are emerging that structure their tokens as security tokens under US regulation. UU and they work with internationally accredited sponsors, "adds Nick Evdokimov.
It also recommends that sponsors consider working with the ICOs of a successful startup through funds.
"The fund enters the startup as a buyer of wholesale tokens and receives a good price. If you make this decision independently, it means that you have made your own internal rating, which will save the sponsor some effort. The fund can reach an agreement with the startup in absolutely unique terms, such as risk coverage or conducting mixed transactions with the funds raised. Therefore, pay attention to what funds have been linked with the start-up, and if you can participate through a fund instead of directly, do not miss the opportunity, "recommends the expert in the market.
SourceICOBox .
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