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.

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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.

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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.

2018 ICO & Crypto Predictions

2018 Crypto predictions

In 2018 we predict that there will be a number of trends ICO’s:

  1. More real companies that have significant traction (users, revenues, etc.) will do ICO’s
  2. ICO’s will move to central hubs versus the current distributed individually run events
  3. The media will call the ICO market as a bubble and about to die every day even as the ICO market matures and becomes more robust

The bigger prediction that most people are not talking about is that token issuances that are securities will dwarf utility tokens. This will be driven by non tech token generating events “TGE’s” in traditional fund sectors. This will become possible through the establishment of more regulated exchanges that have government issued licenses and make it possible for people to trade tokens as securities legally.

Miscellaneous predictions such as con artists, fake ICO’s and law enforcement coming into the picture with arrests etc. will happen however this was already starting to happen in 2017. The scale around this will be a lot faster than people realise and the critics will point to ICO’s being scams.

Enjoy 2018!

Japan Crypto Currency markets

Japan crypto market places

On the 29 September 2017 Japan Financial Services Authority gave licenses to 11 companies to run cryptocurrency exchanges.

The exchanges that go the licenses are:

This is making many people question whether or not Japan will be the next ICO boom market.

Currently the licenses allow these markets to trade the following digital currencies:

BCH – Bitcoin Cash
BCY – Bitcrystal
BTC – Bitcoin
CICC – Caica Coin
ETC – Classic Ether
ETH – Ether
FSCC – Fisco Coin
LTC – Litecoin
MONA – Monacoin
NCXC – NCXX Coin
PEPECASH – Pepe Cash
SJCX – Storjcoin X
XCP – Counterparty
XEM – Nem
XRP – Ripple
ZAIF – Zaif
ZEN – ZenCash

Not every exchange can trade in all the currencies, however this is a very interesting and positive step for the Japanese crypto currency market places.

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Source: https://www.techinasia.com/japan-approved-crypto-exchanges

 

How to build your Crypto Currency network

ICO Friends

One of the most overlooked aspects of an ICO is the community around this event.

You may have a great reputation in the traditional business world but you still need to network and become part of the crypto currency community if you want to run a successful ICO.

There are a couple of different worlds inside the crypto currency community. These broadly are the physical worlds and the virtual worlds. In order to build your status in the virtual crypto currency world you need to develop your presence  there. See the article on where to build your ICO community for more info.

There is a another community mainly around the brokers and ultra high net worth individuals (UHNWI) that you also need to become part of and for this check out our report on how to do PreICO sales.

There are also many events that are happening at different scale around the world and if you are really serious you may be well off going to offline events to meet people in person.

The main thing you need to figure out is how you are going to give to the community first and then align yourself with like minded individuals that will help you achieve your own personal ambitions with your project/service.

The other overlooked thing here is time and relationships with people that need to be formed before they commit their time and reputations to help you.