Do ICOs still have a chance in the current form?

Hello dear blog readers,

last week, the Blockchain project Civil failed to declare its ICO a failure. Despite the recent partnership with Forbes, the Blockchain journalism platform was unable to reach the minimum investment target (softcap) of $ 8 million. If one of the few substantial ICOs these days can not even take a single-digit million amount, then the question arises whether ICOs in their present form have not abdicated.

Therefore quite a few companies consider whether they should even carry out an ICO at all. Moreover, marketing costs have long since decoupled. Expenditures are becoming increasingly high, desperately attracting attention from the investor side. The former promise to collect tens of millions with little effort is history.

The hope lies in a change in the entire ICO sector now. Some Blockchain start-ups are waiting and hoping for a replacement of the term Initial Coin Offering and the emergence of Security Token Offerings (STOs). If security tokens are present in a regulated environment and with newly created trust, there will be many blockchain companies who will actively re-think tokens.

It will be mainly security tokens that replace previous pseudo-utility tokens. STOs, unlike ICOs, are the more honest option when a company is primarily concerned with raising capital. Until that happens, however, there is a need for the regulatory authorities to comply, which to date does not allow a practicable or economic implementation of security token offerings.

Greetings and hear you in my next article.

Michael Thomale - @michael.thomale