There is no general consensus on the subject, but let’s face it, ICO’s (Initial Coin Offerings) will be a thing of the past, and, companies like rocketICO that are betting their futures on ICO’s will surely fail! Heck, the business model they created is just one of the companies creating that fear: Imagine having executed your ICO with one slight mistake, companies like Rocket will burn you at the stake and call you a scam or fraud!
There are plenty of potential examples: Imagine a Gold production company that produces a commodity that is generally desired by thieves / criminals. This type of business model requires utmost secrecy and privacy to protect employees identities and locations. Imagine posting an employee directory on an ICO page, this could create a hostile if not dangerous opportunity for thieves to start creating and hatching a plan to hold respective staff hostage, after all, it is South America we are talking about. It is Human Resource policy under management at most mines that states employees are not allowed Social Media accounts let alone personal cellphones on mining premises. Now a company like Rocket would state that ICO to be a sham and this would create a slew of potential legal suits.
There are so many grand ideas on building decentralized apps for the crypto revolution, just most are not well executed or thought out and, because of low or no standards in place, the first ICO’s decided on the rules of development. For example, why does everyone need a “whitepaper”, or need a list of “experienced blockchain staff”, or need “social media accounts” and the list continues. Honestly, how many really read it? Likely, they find the reward more fascinating when making the investment decision. I find it bizarre that in a decentralized concept there are so many who will toot their own horns but want to limit the field players. These techies prop themselves up as the only ones with experience and they need to sit on everyone’s executive boards. Take Vitalik of Ethereum, his name is synonymous volatility and he is a founder of Ethereums volatile infrastructure, coincidence? Maybe. How many boards does this computer guru sit on. From my position he has zero business experience and from his Whitepapers I see many deficiencies in his business model. I would give him a low grade for running a business and moreover i would run the opposite direction if he was required to sit on my board of directors just to have a successful ICO.
Now we have the Governments as a large obstacle, and after defending yourself through the policies set into place by tech gurus and ill-willed app developers, you now have this problem: The SEC for example are positioned by legislators who are positioned by lobbyists who are paid by the banks to create a larger than life issue about ICOs. Anyone doing the math can see that there is no real market share with crypto-currency. The amount of wallet holders Globally is such a small fraction that I believe banks sit back smoke cigars and drink their rum laughing at the chaos being created by these wallet “Hodlers”. It makes me angry to know the banks got away with all the fraud of the mortgage crisis and know that credit debt and government student backed loans are surely coming soon. Big Govt should be focused on the bigger prize “bank greed and fraud” than crypto supposedly being a issue. What is the real problem? Competition for the banks? Tax collection? Terrorism usage? Money Laundering? All these still exist with what we currently have in place. The only difference is crypto has more transparency.
So that covers a lot, but 90% of the problem with ICO’s is they are not generating enough interest with the populist, only with the “Gambling type” personality and this is why ICO’s will fail. The only reason most invest into ICO’s is because they were promised something and truthfully most believe the 1 token they purchased will be the next 18K bitcoin. The truth lies with this particular hashtag #hodl . For me I see the problem in the volatility. I may as well keep investing in Govt bonds, at least they are consistent. For the populist to get involved, there has to be something more stable and more usable and ultimately backed or have ability to convert. Most laugh at the #hodl but in truth it’s a bunch of wishful people hoping to become millionaires for having invested pennies. Most of the people that have not invested in crypto-currency that see these types, think it’s a joke and shake their heads and continue doing their thing.
Now that I covered 95% of why ICO’s will cease to exist, the last 5% is when most companies that have completed ICO’s, and actually collected a significant amount of Ethereum or Bitcoin in exchange for the crypto offering of that particular ICO, will be faced with the challenge of paying payroll and rent without having deep pocketed investors with fiat doing that for them. I can’t imagine employees feeding themselves and paying their electricity bill on the ICO token or even with Ethereum and / or Bitcoin. The real ICO’s that are successful are the ones that have two fold investors: ICO “hodler” buying their coin with Bitcoin and Ethereum and the Initial cash investor paying the payroll. So unless you have a mind blowing concept which will produce a cash heavy pocket and a populist consensus with all Govt requirements in order, don’t count on having a 80 million dollar Ethereum, Bitcoin equivalent ICO month anytime soon.