ICO is deservedly in a downturn, but they have a chance to change
The cryptocurrency market is declining, at the same time the size of investments that attract ICO projects has significantly decreased . Maybe these are just market fluctuations, but it is more likely that the decline in investment is caused by the increased content of fraudulent ICO projects and the uncertainty with the government regulation of these start-ups. Both causes can be eliminated.
The influence of government regulation can be seen in the recent upsurge of the market immediately after the positive news from regulators, including the SEC , who publicly announced that Bitcoin and Ether are not securities.
The advanced states understand the blockchain's capabilities and try to keep up with the speed of industry development. They begin to regulate the niche, which leads to a reduction in the risk of investment in ICO projects. For example, South Korea plans to invest $ 880 million in technology development, including the blockchain, and one of the largest US exchanges (Nasdaq) is already close to listing coin.
I believe that for the development of the ICO industry, projects must change in such a way as to maximally protect the interests of both large hedge funds and small private investors. It is necessary to reduce the number of unreliable startups, give investors control over the development of projects and the expenditure of funds, as well as allow them to receive a share of the profits.
It is also important to redirect the flow of funds from unreliable projects towards startups who are truly passionate about the idea and are able to lead the business to success.
How to improve the industry? Switch from ICO to STO.
Transition from ICO to STOwill be the most important stage in the preparation of the crypto industry for full state regulation. A new investment model will help create a safer and more equitable decentralized economy in the future.
By participating in STO, the investor will also buy, sell, or benefit from the storage of tokens, but in fact they will be investment assets, and investors will be equal in rights to the owners of the shares.
To launch STO, the company will have to comply with KYC , AML standards, SEC requirements, and laws that may vary from state to state.
Considering the rather large volume of requirements compared to ICO, it may seem that launching a security token can turn into a legal and technical nightmare, but, first, you need to be aware that startups collect tens and hundreds of millions of dollars, and such amounts require from the team of security guarantees. In addition, platforms are being created that are ready to take on the pitfalls.
For example, the Mobu platform is being prepared for launch , which offers customers not only KYC, AML and SEC requirements, but also banking support for investors, the placement of smart contracts and escrow service, which will generally facilitate the evolution of the industry.
At the moment, there is a clear trend towards the decline of ICO projects based on utility tokens. They are replaced by offers of security or equity tokens, which in fact means the end of the gold rush and the beginning of a normal business, safe for investors and convenient for serious startups aimed at creating really useful products and developing the industry.
The influence of government regulation can be seen in the recent upsurge of the market immediately after the positive news from regulators, including the SEC , who publicly announced that Bitcoin and Ether are not securities.
The advanced states understand the blockchain's capabilities and try to keep up with the speed of industry development. They begin to regulate the niche, which leads to a reduction in the risk of investment in ICO projects. For example, South Korea plans to invest $ 880 million in technology development, including the blockchain, and one of the largest US exchanges (Nasdaq) is already close to listing coin.
I believe that for the development of the ICO industry, projects must change in such a way as to maximally protect the interests of both large hedge funds and small private investors. It is necessary to reduce the number of unreliable startups, give investors control over the development of projects and the expenditure of funds, as well as allow them to receive a share of the profits.
It is also important to redirect the flow of funds from unreliable projects towards startups who are truly passionate about the idea and are able to lead the business to success.
How to improve the industry? Switch from ICO to STO.
Transition from ICO to STOwill be the most important stage in the preparation of the crypto industry for full state regulation. A new investment model will help create a safer and more equitable decentralized economy in the future.
By participating in STO, the investor will also buy, sell, or benefit from the storage of tokens, but in fact they will be investment assets, and investors will be equal in rights to the owners of the shares.
To launch STO, the company will have to comply with KYC , AML standards, SEC requirements, and laws that may vary from state to state.
Considering the rather large volume of requirements compared to ICO, it may seem that launching a security token can turn into a legal and technical nightmare, but, first, you need to be aware that startups collect tens and hundreds of millions of dollars, and such amounts require from the team of security guarantees. In addition, platforms are being created that are ready to take on the pitfalls.
For example, the Mobu platform is being prepared for launch , which offers customers not only KYC, AML and SEC requirements, but also banking support for investors, the placement of smart contracts and escrow service, which will generally facilitate the evolution of the industry.
At the moment, there is a clear trend towards the decline of ICO projects based on utility tokens. They are replaced by offers of security or equity tokens, which in fact means the end of the gold rush and the beginning of a normal business, safe for investors and convenient for serious startups aimed at creating really useful products and developing the industry.