Cryptobuzz Report: No. 12

Big News: “What ICOs are you looking at?”

The number one question I get asked is “What ICOs are you looking at?” ICOs are popping up everywhere, and this latest craze is driving innovation towards mainstream adoption at a pace not seen before. In the long run, all this hype is a good thing causing more people to get interested in the space, but at the same time, this ICO mania is rife with concerns.


Foremost of these concerns, is the high level of uncertainty in terms of legislation from the SEC about ICOs. The SEC recently issued an Investor Bulletin cautioning investors about the risks of investing in ICOs. Not surprisingly, this isn’t the first time the SEC has cautioned investors about potential risky investments. Below is a snapshot of a bulletin the SEC put out in 2013 warning against MLMs as fraudulent pyramid schemes. I include this because the warnings seem to also apply to ICOs.

mlm.png

That didn’t scare you away? Ok now read this, this, and this. Still here? While there is a lot of hype, there is plenty of opportunity and actually some very interesting projects. Below are a few resources that might be helpful to you if you’re starting to research ICOs, and a few ICOs that we are taking a look at.

 

 

ICO Research Resources

  • Smith and Crown - Reputable place for research and reports. Plus they provide an ongoing calendar of token sales.

  • ICO Rating - Not a perfect system obviously, but helpful to have some sort of rankings around the team, hype score, etc.

  • Token Data - They have an ICO Calendar and lots of data around the returns and sucess of past ICOs. Their weekly newsletter is also very informative (did you know there 33 ICOs this week alone!?).

 

Interesting Token Sales

  • KIN by Kik - Kik is a social messaging app (think FB Messenger, What’s App, or WeChat) that already has 50 Million MAU. They had previously rolled out a successful points program in their app that proved to be very successful. If KIN is used within Kik at the same scale the points were used, this will easily be the most mainstream use of cryptocurrency to date. They are backed by an experienced founding team, and have already raised $50M in their pre-sale from Crypto heavyweights Blockchain Capital, Pantera Capital and Polychain Capital. If interested, register here before September 9th.

  • Enigma - Enigma is competing with several others along a similar idea (see Santiment, CoinDash, iconomi, Melonport, and Prism) but at the same time anything in the Crypto Finance space gets a lot of attention. Developed by a team of MIT graduates, Enigma Catalyst is an investment platform that enables developers to build, test, and execute micro crypto-funds. They have already raised VC money from some decent names and are receiving quite a bit of media attention. Token Sale starts here on 11 September.

Foreground - What started as a side project, has quickly become a full fledged company. Foreground is using smart contracts to automate the payment for affiliate marketers. The trustless approach guarantees publishers are not defrauded and people aren’t shaving leads. All of which are rampant problems in the space. The most exciting aspect is there is a working product that leverages the blockchain. Plus, think of all the token sales that will want to use this as part of their marketing campaigns. This is still early, but be sure to keep this on your radar.

Let us know if you hear about any ICOs that look interesting or you want us to research more.

-Spencer

 

Interesting Articles

  • Ronnie Moas predicts a future market cap for crypto to the tune of $2 trillion. One way he looks at it is the total value of stock, bonds, cash, etc is $200 trillion. Crypto would only need to take 1% Link.

  • People in Venezuela are turning to bitcoin to protect against inflation. It helps that electricity is subsidized by the government so they can mine bitcoin for free. Link

  • Burger King Russia might be launching their own cryptocurrency called WhopperCoin. Seems unlikely, but I hope they do. Link

  • SALT is a service of providing liquidity by taking your cryptocurrency as collateral. Link

  • WSJ article explaining why Bitcoin shouldn’t be valued at any more than $400 Link

  • The world’s largest tourism company is already leveraging a private blockchain and is looking to extend it to a public version. Link

  • Fred Wilson provides a guide as to how to value crypto assets. His comments come as a response to the WSJ article listed above. Link

  • Ethereum will not be the only platform for smart contracts. There will be huge opportunities to benefit from the rise of other platforms like NEO. Link
 

Chart of the Week

**Incredible charts highlighting why a portfolio that holds altcoins long term will not out-perform Bitcoin. Link