Market Trend: Ecommerce ICO’s incoming

As investors and entrepreneurs we have seen many iterations of the e-commerce over the years. Traditionally this market has seen low margins and even lower barriers to entry. A quick glance at Tokenmarket upcoming ICO’s shows that in the next week there will be 3 ecommerce ICO’s out of the 10 featured on the site.

Screen Shot 2018-01-26 at 9.34.05 AM

Size of ecommerce ICO’s

Traditionally the ecommerce ICO’s have raised smaller amounts and have not had strong use cases for their own coin’s. In ICO reports ecommerce has not traditionally even been a category and this gives a good indication of the lack of appetite for these offerings historically. A notable exception is likely to be Overstock ICO who have indicated they are looking to raise $500m in their ICO later this year on tZero.

What is interesting is that they in fact plan to sell off their retail business according to their CEO (Patrick Byrne) and focus on their blockchain businesses.

patrick_byrne_overstock

What does this mean for traditional e-commerce retailers and ICO’s?

The use case for a token offering specific to one particular ecommerce store is low when you think about utility tokens. However in the future with security tokens this may change as their could be more economic incentives offered vs technological rationale on why the new coins may have more value in the future.  The fact that Overstock is getting planning to move away from the retail space may tell you something about this opportunity or just be an indicator that they don’t fancy the prospect of continuing to battle it out with Amazon.com the behemoth in the market.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s