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The Dynamics and Trends Shaping the Evolving ICO Economy


The year 2017 was inundated with stories about crypto money and how a lot it was. But 2018 was ushered in on a different note. While those close to the sector note that there will be quite a lot of whitepapers, prototypes, and conferences, there will be changes in the industry too.

There are indications of a rise in betas, iterations, and testes. This is a show of projects differentiation and an overall shift from talking to working. Here is the list of expected trends in the year.

  1.    Regulatory Punishment will continue

It is expected that governments will keep the crypto community in suspense regarding the clarity of regulations that are meant to rein in the crypto industry. The courts will be sought most to interpret the set laws and how the users will be penalized.

Those to be targeted could include exchanges that fail to register and the celebrities who tout tokens without disclosure. The ICOs will have a lot to do in terms of referring to the past rulings in order to remain completely compliant.

  1. 2.    The Funding Growth

It is unlikely that the overall token investment will decline although there may be slight variations in rounds. There will be huge deals as well as smaller and faster rounds in the year 2018.

  1.     Startups could seek Ethereum Alternatives

Ethereum will be required to process vast transactions at a super speed in order to serve the needs of the public. There is the talk of Ethereum successfully scaling, unlike Kik that dropped this venture. Stellar has already seen $39 million ICOs launch on its platform. While major predictions put Stellar at a position of receiving more and major ICOs his year, there is a general agreement that the real solution lies in unbounded transaction volume.

  1.    Deployment of Decentralized Apps

This year has already been touted as one of talent and shipping. With this in mind, entrepreneurs will be intensely pressurized to place the products at the public’s disposal so that the tokens can be utilized for the intended purpose.

It is also expected that the beats and alphas will be launched in quick successions this year.  A close watch is on the token prices as the public accesses those tokens and experiences their ‘slowish’ and ‘buggish’ nature.  

  1.    The Testing of Token Economics Beliefs

The behavior of token utility as they become utilities is yet to be defined. The tokens need to justify to users why the users should hold a particular amount lest their value depreciates to zero. While this has been a general conception, it is yet to be tested in an environment where a new token is actively powering its intended use case.

Other issues to be tested in 2018 include differentiating investors from users, and also confirming whether wider initial token distribution foster faster adoption.

  1.    An Increase in Consumer Sophistication

As more people understand the trade, there will be more terminologies on the board. More vocabularies rise as the industry sophisticates more. ICOs have been divided into securities and utilities as regulations set in.

There is also talk about ‘rewards tokens’ as used by Tokensoft cofounder, Mason Borda. This has also been differentiated from ‘work tokens’. These tokens are like stakes that are earned by users on a particular protocol.

  1.    Decentralization of traditional Tech Companies

There is a general belief by many that more companies will come up with reasons to issue tokens and raise money. Facebook’s Mark Zuckerberg has said he is studying blockchain technology and Telegram is already seeking a billion dollars or more.

If these large companies decentralize, it would democratize value creation and increase the crypto space.


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