ICO’s (Initial Coin Offerings) were all the rage in 2017, Crypto based startups managed to raise over $5.7 Billion in ICO funding in 2017 surpassing traditional Venture Capital.
Did ICOs disrupt traditional Venture Capital?
Not even close.
In 2018, not only did the number of ICOs fall significantly but also most of the money raised was from private investors in a few major ones like Telegram. There are several reasons why this happened:
There is a reason why investment banks exist in the traditional IPO market, they go through the tiring process of due diligence and provide liquidity to the stocks. The retail investors do not have the bandwidth or time to do the due diligence on every project.
As much as the ICOs did democratize the process of investing, due to a lack of oversight and accountability many founders took advantage of the model to make a quick buck.
This industry deserves better.
There is a new which can make ICOs legit again, Enter Public Exchange Offering!
In this new model called PEO, instead of a project having the token sale details on a website with a smart contract, they will be able to delegate this entire process to a trustworthy exchange. Exchanges become successful by building trust among its users, so when a project goes through an exchange to do the public sale the exchanges’ reputation is also on the line.
Temco, the first ICO to be run on Rootstock (RSK) is adopting the PEO model in partnership with the reputed Chinese exchange Coinbene.
Temco is a venture-backed company that is aiming to solve the most obvious problem that Blockchains are set to disrupt: Supply Chain. Unlike most other Blockchain startups working in Supply chain, Temco is aiming to take it to a whole new level by combining Blockchain based supply chain management with Big data collected from the public through multiple nodes of the supply chain. The company aims to reinvent the supply chain system using Bitcoin smart contracts.
The company is trying to solve real problems, unlike many ICOs who are searching for problems by having the technology first. A real use case for Temco would look like this: An aircraft is on the way to India and is in need of a part wherein the Pacific Ocean is the tanker with the part, this data is collected by Temco either by a public GPS system or a private API and added to the Temco system.
In order to achieve the full democratization of capital formation which was the initial vision of ICOs, it is critically important to weed out the bad players in the industry and create a standardized process to raise money.
It is better to have 10 less ICO’s than 1 more scam, clearly, the current model in which funds are being raised is not working.
Public Exchange Offerings (PEO) may change the Crypto industry for the better.
Image Source: Unsplash
Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
Macro guru and Real Vision CEO Raoul Pal shone the spotlight on a rising layer-1…
As the technology landscape transforms at lightning speed, AI Companions has positioned itself as a…
Did you know that 85% of DeFi value is concentrated in six blockchains? DeFi is…
CLAPART - a groundbreaking RWA platform has launched its much-anticipated $CLP token IDO on Gempad…
Join us at BFC 2024 to explore the future of Web3. Use a special discount…
Catch all the updates with Altcoin Observer, official media partner of WebX Asia 2024. Gear…