What’s Next On The ICO Market?

What’s Next On The ICO Market?
With the ICO model undergoing crisis these days, many wonder what it is to expect in regards to its development and future in general. Ivan Aleksandrov,the CEO of Memorandum Capital, an investment company focused on ICOs and investing in blockchain-based assets, outlines 3 trends that will not only resolve the crisis but will also contribute to its advancement.

I am often being asked about what is going to happen to the ICO market and how it is going to evolve in the future. It is commonly agreed that it is currently experiencing major problems that make it even worse than the situation with Bitcoin. The ICO model as we know it today undergoes crisis, however, it is important to remain optimistic while looking into the future and try to understand how this crisis can be resolved. I will outline 3 trends on the ICO market that will have a huge impact on its overall development. The first trend is the entrance of Venture Capital on the market and entrance into equity and tokens, simultaneously. It is when the fund gets to exercise control and its fair share of profit, on one hand, and get part of the token’s emission – on the other. This format will be observed on a more and more frequent basis, just like another one, when major crypto investors join crypto funds and equity. Consequently, this will lead to the situation when the division between crypto funds and venture capital funds will fade away. The second trend is an increased attention to the crypto market from the non-crypto investors from the corresponding industries. For example, blockchain project dealing with music will attract investment from both crypto funds and companies from the music industry that will use the product in the future. Another example is gaming holdings starting to invest into gaming crypto currency. I personally believe that it is a great trend that will benefit the overall development of the ICO market. Another trend occurs with the situation when professional players, high profile individuals and advisors from invest banks and top firms like Deloitte and KPMG will not only conduct audit of projects or provide legal support but will gradually and carefully start to actively participate in ICOs. Widely discussed security tokens is the forth trend observed on the market. Despite not having legal foundation, they created a major hype around themselves and have a great demand from the players. Its further development will take some time, so I would abstain from rushed conclusions, however, I would like to admit that the right time for security tokens is yet to come and its legal foundation and governmental reaction will soon become a public discus. The governments prefer not to make affirmative statements due to the fact that the industry is still developing, but I suppose that their first steps towards finding common grounds with regards to securitization of tokens will give an impetus to the overall development of the ICO market and benefit it immensely.

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