To indicate a positive sign in the cryptocurrency space now and in the future, ICO funding trends have changed within the past one year.
According to an ICO attorney, Jay Swob, “in all my years of law, this [ICO] is one of the fastest changing sectors I’ve ever seen. It changes each week like a snake in the grass twisting and turning. There is simply no way to plan, but it is very, very exciting.”
Swob is outrightly right. In the past year, for a business or an individual to raise a considerable amount through an Initial Coin Offering (ICO), all was need was just a sketchy whitepaper and some few supporting details.
But with the current trend, ICO investors are demanding a fully outlined whitepaper a “presentation deck”, others even require an MVP (Minimum Viable Product) while others go a step deeper and seek to be enlightened on how the network will be programmed plus what actually props up the ICO.
“Everything is beginning to change simply because the business is starting to mature a bit,” noted Forbes.
Apart from investors, ICO funding trends have changed even on the perspective of legal fees which have greatly dropped seeing that more and more specialists in law are joining the crypto space.
For example, for an ICO to be run in the U.S, legal fees range between 100 to 150 thousand U.S dollars while an ICO that does not pitch to investors from the U.S has its legal fees range between 50 and 75 thousand U.S dollars. These fees once went as high as $500k.
“The next iteration of all this is the position of a crypto portfolio manager,” says Jay, “watch for more individuals to enter into this space, but it will not be for the faint of heart.” Jay Swob notes this will feature crypto angels and crypto ICO funds ‘so that they can have more control in the startup investment game.’
The next hot trend, according to Swob, will be the creation of a dual token, it’s a security token and a utility token
The new changes in ICO funding and the general maturity of those investing in virtual currencies is likely to bring more meaningful blockchain projects into life while at the same time opening up more businesses to explore an Initial Coin Offering as a way to fund its operations or ideas.
As the trends in ICO funding keeps changing for the better, do you think the number of investors caught up in ICO scams is likely to go down?
Let us know your thoughts in the comments section below.