Gabriel Shaw, marketing Director of kleptomanka Wirex, under the author’s column shared his opinion about whether or not to believe the created ICO.
How it all began
Until 2017, few had heard of ICO, crowd investing and tokensale — the essence of a single phenomenon “crowdfunding,” but with the use of cryptocurrency. On the “hype” for 2017 start-UPS have managed to raise about $5.5 billion. The fact that most of these projects did not take off and some won’t even try, was not immediately clear, but the fact remains — we have repeatedly heard about disappeared from sight “entrepreneurs” of their arrest, about the problems of a different nature to the project and so on. However, this does not stop investors. For the first two months of 2018, it had deposits amounting to more than $1 billion.
The market dictates its own rules and forms a new niche, for example, ICO rating Agency. The first rating of the blockchain startups facing ICO, appeared on ICORating in early 2017. Not the most pleasant features of this ranking to the user are traits such as the low number of records and weak methodology. In the Russian-speaking Internet was first DigRate, which manifested itself in the fall of 2017.
The degree of confidence to rating agencies the audience is not high: the recent financial crisis was largely triggered with the assistance of well-known international rating agencies. The second possible logical factor of mistrust is the suspicion of monetization in the Wake of “hype”: to attract investment startups need to Express themselves, and one of the best ways to do this is to get an independent rating. Monetize whether the desires of the organizers ICO owners independent ratings or not — is unknown, and credible evidence confirming it does not exist. But the market has found a solution to this problem.
ICO-ratings & Telegram
Throughout 2017 cryptologist gradually moved from forums and blog platforms in the Telegram. Now the messenger can be described as the main communication platform for crypto-enthusiasts and one of the most popular services for communication crypto-investors with startup teams facing the ICO. This indirectly may indicate the compare covers of the same publication on the website and in the Telegram-channel belonging to the same media.
In addition to media and startups, Telegram community created by traders with analysts, forming a pool of loyal investors, trading in cryptomeria or investing on the recommendations of the owners of the channels in such projects. Now these channels are beginning to create their own ratings of the ICO projects. In particular, recently such plans announced channels Top Traders by tradingview and Criptored specializing in the trading. There are other channels, initially focused on ICO announced projects, such as ICO Base ICO and Day.
The fundamental difference between these groups of channels, except that the degree of confidence at the first few above. This is due to the fact that the latter was created with the reference purpose without a purpose to get fast profit, but subscribers first had the opportunity to verify the quality of published materials, receiving some benefit from trading ideas and tips.
Trust? No, not heard
In most cases, the problem with these channels is to as a dimension. Now all of the rating teams about the same difficulties: lack of qualified personnel and the industry is still young. Whatever figures or operated the cryptocurrency market Analytics, high-level, we can only see when the market will drop, the international rating brands.
With regard to methodology, it is, as a rule, is in the public domain. Or it can be obtained. The refusal to provide such information leads us directly to the question of the credibility of the rating. And at the same time identify interesting projects among a huge number of proposals a person is not of the industry difficult.
Monetizing these channels through advertising and creating a pool of investors to enter the draft in closed rounds (private sale) with a high entry threshold — an average of 100 ETH and more. In this case, the pool organizers use the long-known practice of “joint purchases” and immediately indicate a percentage of distributable tokens. If these “purchases” investors still get a big profit in comparison with investing in a project on the main (tokensale) or even Pre-ICO stages on a common basis.
And yet, despite suspicion of monetization of any kind of services related to ICO (ratings, advisors, listings, and so on), crypto-enthusiasts need some guidance in this area. Ratings and other related elements of the industry help not only beginners, but also serve as a signal for the experienced crypto investors.