Last year, $7 billion followed into ICOs. Combined with 2018, the cryptocurrency-based funding mechanism is estimated to account for $20 billion. ICOs threatened to disrupt venture capital more widely across the board, but the signs suggest that a relative status quo for investment is returning with VC capital a preferrable option once again.
We’ve seen this with some recent investments — particularly those for Binance, Kucoin and Imtoken — but more widely a relative ‘norm’ is close to being reached, two crypto industry experts told an audience at the TechCrunch Disrupt Berlin event today in conversation with TechCrunch’s Mike Butcher.
The crypto winter is here. Crypto companies are laying off staff to cut costs. The market is moving south in terms of financing, but it isn’t all bad.
These moves are going to bring stability and legality, according to Vinay Gupta — one of the developers who helped birth Ethereum who is currently CEO of tokenization product Mattereum.
The altcoin craze “began to spin down once it was easier to do that kind of stuff on Ethereum because you didn’t have to run your own decentralized network, you could just write and Ethereum script, and then you can run it on smart contract,” Gupta said on stage in Berlin.
“Some of those projects are very successful, some aren’t, but they all should have been properly regulated securities from the beginning, because they were raising money directly to the general public. The governments didn’t go away, the internet doesn’t exist in a separate dimension, there was always going to be a settlement with regulators, and what will come out of that as a correctly regulated token economy next year, the SEC will define these things are not okay.
“The regulated exchanges will come up [and] it’s all going to straighten itself out. But by then it will be much closer to regular finance than the kind of original blockchain wild west,” he said.