ICOs: The end of an Era? The future of Security Token Offerings


This would be one of Civil not expected: This week, the Blockchain-the project, its ICO has failed to explain. In spite of the recently entered into partnership with Forbes, the Blockchain-journalism-platform could not reach the minimum level of investment target (Softcap) of eight million dollars. If one of the few substantial ICOs these days can’t take once more a single-digit million amount, then the question of whether ICOs have not abdicated, in its present Form.

In addition to all of the air numbers, there are Blockchain projects that are truly innovative that are serious. A year ago the Blockchain could crack projects a Softcap of 10, 20 or 30 million dollars. Even obvious Scams penetrated in these areas. Now, after the Bursting of the ICO-bubble, is the self-confidence of the Blockchain projects on the ground. The communication model of a Donald Trump hasn’t worked for a long time. Too often, investors have phrases such as: “We are the Greatest” or “no one is as innovative as it is, we” heard from ICOs. The ICO Hybris has been overtaken by the reality: It was not delivered, the capital has retreated.

The 90-Per-Cent Slump

The ICO-investment, per se, is not bad. Due to the higher demands of investors make it is less and less projects to sell their tokens and lists on the stock exchanges. The flood of meaningless Token to be curbed, the market is a professional. This is a healthy development, albeit painful for many investors. Nevertheless, A drop of around 90 per cent of the ICO market for the tangible crisis in the ICO sector, no doubt about it.

This crisis is particularly promising Blockchain projects, which create it, to reach to the end of 2017 comparatively low ambitious Softcap. Civil is representative of many of the failed ICOs, in spite of a good team, serious partnerships, and a sophisticated Use Case failed in the second half of 2018.

An ICO is worth it at all?

Not a few of the Blockchain-business, therefore, the question of whether you should still perform a ICO. The marketing costs have also decouples a long time ago. Higher and higher the expenditure, in order to generate desperately attention from the investors side. The former promise, with a little effort, a two-digit million amounts to collect, is history.

The hope lies in a change of the entire ICO-sector. Some Blockchain-Start-ups prefer to wait and hope for a renewal of the concept of Initial Coin Offering as well as the advent of a Security Token Offerings (STOs). If Security tokens are in a regulated environment and with a newly-created trust can be represented, there will be many Blockchain-companies are again actively thinking about a gift of Token.

From the ICO to the STO

The original idea of a ICOs is awesome and will prevail in the short or long. ICOs the future of business financing are, only they are not hot then probably more ICOs. It is mainly a Security will be Token, the previous Pseudo-Utility-Token-replace. STOs the more honest variation, in contrast to ICOs, if it is for a company, the primary issue is capital to collect. It is primarily the institutional players to determine the market, as well as in the regulated financial sector. Occasionally, there will be also a Utility Token. These are, in contrast to today’s Utility is a function Token, but in a truly decentralized network. It is not commercially, successful cases, in which more than a handful of people Utility Token for their intended purpose – Trading is part of the whole.

The big money is for the time being, but, at least in the next few years, in the Security Token, as well as the tokenization of real assets – regulatory basis provided. According to eager companies and investors are waiting for the Go to the regulatory authorities.



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