Blockchain Expert Eddy Travia Says ICOs Will Raise $10 Billion+ in 2018 at CoinAgenda
Eddy Travia Says ICOs Will raise Over $10 Billion Dollars in 2018
Initial Coin Offerings, popularly known as ICOs, have been expanding in the last years and moving important sums of money. This year, they may generate more than $10 billion dollars according to blockchain incubator pioneer Eddy Travia.
He gave these comments at the CoinAgenda Asia conference in Singapore on June the 22nd. At the same time, he explained that risks, responsibilities and pressure have been increasing and will keep doing so for those who want to conduct Initial Coin Offerings.
Travia is also the founder of the investment firm known as Coinsilium. he organized the first Bitcoin conference in Singapore back in 2013, and raised investment capital for different startups in the industry, before ICOs existed.
In addition to it, he said that Token sales have already passed their initial hype period and that they face new challenges, for example, security. In the last months, several virtual currency exchanges have been hacked generating concerns in the community about how safe their assets are.
Furthermore, there have been different scams in the crypto sphere that raised concerns among authorities. Individuals and companies were losing important amounts of money in Pyramid schemes and similar fraudulent practices.
This is one of the reasons why governments decided to increase the legal pressure on ICOs, founders and the cryptocurrency market. But there are some jurisdictions around the world like Malta, GIbraltar or SIngapore that have convinced several companies to settle their operations there. Another important place for ICOs could be Bahamas.
Of course, Travia is optimistic about the new tokenized economy, and he believes that it will transform investment and startup incubation, but he warns and is cautions about this situation because it will not happen instantly.
In general, blockchain projects say that they are going to disrupt their industries, but he says that he prefers to say ‘affected rather than disrupted.’ Moreover, he explains that the industry is not mature yet and that we are in the early stages.
At the same time, he compared it with the 1990’s dotcom bubble, where many companies failed, while others were able to exponentially grow during the years. In the future, the value-creation mechanism these companies are using will develop into something more sophisticated.
Finally, Initial Coin Offerings are changing the role of VCs and investors. Now they are transforming into something more similar to private-sale deal hunters and ICO advisors. But there is an important difference: speed. Instead of having returns on investments in three years, investors have it within weeks or months.
It is important to mention that companies do not need to demonstrate an existing revenue stream, but a showing a minimum viable product is enough.