Cryptocurrency Market Outlook: Growing Maturity Brings New Challenges

Blockchain, Investing, Opinion, Regulation | September 17, 2018 By:

Winter has come for the initial coin offering, and it’s at a time when cryptocurrency prices are down and (some say) may head further south.

News that the Mt. Gox hoard of coins that have been recovered may be partially released to holders may flood the market, and the war between blockchains isn’t great news for solutions providers. When people like Vitalik Buterin, the co-creator of etherum, start telling you the party is over, it may be time for a reassessment.

Here are a few takes from prominent industry people on what may come next:

Bruce Elliott, president of ICOx Innovations, which creates loyalty, reward, gaming, and payment cryptocurrencies for established companies that can benefit and grow their business through blockchain technologies and crypto:

“There will be more crypto companies testing the public markets, particularly in Canada, which has more listed blockchain companies than any other market (U.S.-based companies are welcome to list on the Toronto Venture Exchange, for example). Fewer and fewer global ICOs are open to U.S. investors — most ICOs out of the major issuing jurisdictions of Switzerland, Singapore, Malta, Gibraltar, and Hong Kong are excluding American investors. In the U.S., raising funds with an ICO to build the platform will become a challenge. Private pre-ICO funding rounds will become hybrids of equity and convertible debt. Only once the platforms are built and transacting with real customers will public ICOs be undertaken.”

Ben Waters, head of digital at enterprise-grade blockchain infrastructure IOST:

“Even as the bear market of 2018 has driven many people out of the market, it’s also seen the most exciting developments for blockchain in terms of real world acceptance and acknowledgement by major players. Many governments have sent a clear signal that irresponsible ICOs will not be tolerated, and have proven willing to consider the real-world utility that blockchain has to offer. Throughout the rest of 2018, many so-called ‘A Players’ will continue leaving top industries for the greener pastures of the blockchain industry because they believe this is the technology that will shape our world over the next 20 years. This will happen even as the get-rich-quick types are leaving the space, which bodes well for the future.”

Rahul Sood, CEO of Unikrn, a Mark Cuban-backed esports betting startup with the largest esports gaming cryptocurrency and one of the most comprehensive esports books in the world:

“2018 will go down in history as the end of the ICO era and the beginning of the STO era: the security token offering. Greater transparency, real ownership stakes, and better consumer protection will begin to fuel a healthier crypto economy, and the latter half of 2018 will be defined by the beginning of this transition. This year and early next year are about growth in use cases, adoption of security tokens, and a reduction of reliance on blind speculation. Once crypto builds that foundation, it can and will see another surge period with more sustainable potential because it will be powered by usage rather than greed. I think the next bull market will be bigger and more focused than the last one, with bitcoin leading the charge again.”

Josh Fraser, co-founder of Origin, an open-source blockchain platform for creating p2p marketplaces like decentralized versions of Airbnb, Uber, and Craigslist:

“Prices will slowly recover some of the losses they experienced in H1 2018. We’re seeing a shift towards development in the blockchain and crypto space, which is extremely important because some of the key pain points in the space are usability and pricing. Many people’s first experience with crypto was buying at the height of the market and watching the value of their investments erode over the past several months. People who have written off crypto as a result will only be drawn back in when they see real utility, versus speculation. This will help stabilize prices and is why building usable systems is critical.”

Andy Bromberg, co-founder and president of CoinList, a platform for the best digital-asset companies to manage their token sales and where investors find deals in the space:

“We’re expecting to see investors become more sophisticated in how they evaluate tokens, projects, and companies, and the gap between high- and low-quality projects continue to widen as a result. We’re anticipating several very large sales through the end of 2018, in addition to a flurry of top projects raising privately. The liquidly traded crypto markets will likely continue to be volatile as the space proceeds through this maturation phase.”