Since the beginning of 2018 in the cryptocurrency industry has been a new regulatory initiatives, technological innovation, hacking and crypto scandals. A separate Chapter of last year — the rise of the ICO, the investment in which in June exceeded $1 billion. What are the main trends of the ICO and the crypto industry are waiting for us in 2018?
- 1 Regulatory measures will be, but final legislation is still far
- 2 Growth financing
- 3 Startups will find an alternative to Ethereum
- 4 Boom of decentralized applications
- 5 Check “licenzirovanie economy” for strength
- 6 Consumers will become smarter
- 7 Traditional tech company would decentralize or, at least, will introduce its own cryptocurrency
- 8 The transition to the new model ICO
Regulatory measures will be, but final legislation is still far
Despite throughout the discussion, most insiders believe that clarity in the near future. It is expected high activity of the courts, especially in relation to issuers. “There will be new legislative measures against non-issuers,” says a former SEC attorney Nicolas Morgan, referring to promoting tokens of celebrities, as well as brokers and exchanges that do not meet local laws. Timothy Peterson of the law firm Murphy & McGonigle, a former representative of the SEC, noted that the ICO will have to conform to regulations and, in particular, to help the investigation. As for the SEC and the CFTC, many people think that the final regulation on their part this year is unlikely. During the recent hearings in the Senate, the Chairpersons Jay Clayton and George. Christopher Giancarlo also did not mention concrete terms, by associating this uncertainty with the fact that the technology is still under development, and the international nature of the market.
Wendy sa Vice-Consul Northzone, said high activity among large and small investors. Szadek and other experts predict that the investment rounds in the crypto-space will become more similar to traditional venture capital investments. “The action must move in the direction of shut tomenselo while the public rounds will be less extensive and in many cases will completely disappear,” says McLane Wilkinson, co-founder of blockchain project NuCypher.
Startups will find an alternative to Ethereum
This trend appeared at the end of last year, in a period of high demand, and as a consequence overload Ethereum. In December the transition of a Kik messenger with the Ethereum blockchain on Stellar announced CEO Ted Livingston, and the draft SophiaTX was forced to postpone the ICO due to hit Ethereum “lottomania”. In January on the completion of 39 million ICO announced the Mobius Network, which switched to Stellar during the period of the development: “We understand that Ethereum can’t handle our technology. He’s too slow, expensive and unsafe,” said the CEO of the project David Gobaud. McLane Wilkinson predicts that most of the ICO this year will be held at Stellar, and will start the development of new protocols. In addition to the Stellar main competitor Ethereum became NEO. But at the same time, many believe that Ethereum successfully solve the problem of scalability: in early December specifically for this purpose acne Buterin announced two funding programs and invited new developers. “Ethereum today — a definite winner, thanks to the development tools that it provides,” — said Josh Fraser, co-founder of a platform for decentralized exchanges Origin.
Boom of decentralized applications
Boost VC co-founder Brayton Williams in a post on Medium already named 2018 as the year of implementation “talents”, saying that more ideas should be implemented and more projects reach the stage of the operation: “Boost VC has always supported the developers, but now we are slightly changing the strategy and will support those who report products to users,” Williams said. Andreessen Horowitz partner Chris Dixon said that currently “prices are ahead of real progress”, and today’s products are often slow and incomplete.
Check “licenzirovanie economy” for strength
How to behave “tokens of value” (utility tokens) when they will actually perform its function? In December last year, the partner MulticoinCapital Kyle Samani has published an analysis of velocity of circulation of tokens, arguing that the holder is obliged to keep a certain number of tokens of usefulness, so the price is not rolled back to zero: “in the absence of speculation in assets with a high velocity will be able to maintain a long-term price stability”.
Consumers will become smarter
Technology will evolve, and more and more people will begin to understand the ecosystem. According to experts, the adaptation of technology evidenced by the expansion of the terminology now distinguishes between “token value”, and the tokens in the form of securities (in connection with the requirements of regulators in relation to the securities market). Co-founder Tokensoft Mason Borda proposed to introduce a “token rewards” that encourage “correct behaviour”, by analogy with air miles. A former employee of Coinbase, cryptocurrency managing Fund 1confirmation Nick Tomaino, put forward the idea of “work tokens” that generate income through the Protocol on which they work. This feature uses tokens in their projects Filecoin, Augur and NuCypher. “I think the most interesting work token is created when Ethereum will go from proof-of-work to proof-of-stake,” said Toumani.
Traditional tech company would decentralize or, at least, will introduce its own cryptocurrency
In early January, Facebook CEO mark Zuckerberg announced the intention “to study the positive and negative aspects of technology and understand how best to use them”, stressing that decentralization will help to get back to basics and the idea, which many came to techsphere — “to transfer power into the hands of the people.” A large-scale project blockchain platform TON, while without a formal announcement, takes place inside of the messenger Telegram. “I think those giants already have staff members who are investigating ways of implementing the technology,” said Brighton Williams. However, some believe that large companies no compelling reason for decentralization. McLane Wilkinson is confident that the tokens will be incompatible with the business models of modern TechnoCore.
The transition to the new model ICO
Another trend can be proposed by Vitalik Butterini new model DAICO. As the name implies, is an advanced ICO, which includes the features of a decentralized Autonomous organization (DAO). DAICO is intended to minimise the risks, involving investors in the development process. The rights of participants in the financing will be secured in a smart contract. The main feature DAICO is that to dispose of the funds are the investors themselves on a “crane” that you can screw and Unscrew, that is, to allocate a certain number of tokens for the use of developers. Such decisions will be made by vote. If investors are not satisfied with the model of the project, it is contrary to their requirements or does not reach the stage of implementation, according to smart contract, they can return the invested funds. According to experts, DAICO significantly reduces the probability and Scam attacks by 51%. The first project planned by DAICO, is a decentralized platform video game Abyss.