Good article here on this – not really answering it but just highlighting the stats :: http://tomtunguz.com/ico-trends/
For sure blockchain, crypto and ICO’s are here to stay. No doubt about it but for every trend there will be good and bad things to happen. No different than any other period of mass change. I myself am still trying to grok the longterm view of this since contrary to popular belief VC is a long game. Of course there are rollercoaster like moments of ups and downs marred with upheavels but generally the course of finding good companies to invest in and seeing them along their journey is what VC is.
And will continue to be.
An ICO will be a new tool in the arsenal a startup has to raise capital or to create a token system that is meaningful to the business. I think this comment at the end of the article is very telling:
First, startups raising these ICOs tend to be pre-revenue. Second, retail investors are buying substantial fractions of these offerings. Third, the volatility of these offerings is enormous.
If this trend continues and questions like regulation are answered, ICOs may be a novel and important mechanism for crytpocurrency based startups to raise capital.
The last sentence is a doozy – novel and important mechanism for cryptocurrency based startups to raise capital.
If I had a dollar for all the ICOs I have already seen that have nothing to do with cryptocurrency whatsover, I could proabably retire. If a company is doing an ICO with no meaningful use of the token other than to raise cash – I would run not walk to the nearest exit.
I have no crystal ball but the world is changing, blockchain + crypto will be a force for change but I wonder myself if there will be more good than bad around this. I bring you this clip from a well known techie:
Again – I don’t have the answers but much to ponder on.