The future of ICOs - Thoughts after beeing back from #DEVCON3
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- ICOs will continue but may raise less money as investors become more sophisticated - Ethereum developers are concerned about too many focus on ICOs instead of protocol upgrades - Future tokens will be classified based on their use as currency substitutes or investments backed by an issuer - Standards like ERC-223 and contracts like MiniMe could become more common as they provide more flexibility than ERC-20 - Interactive coin offerings may help set market prices rather than arbitrary valuations - Upgradable smart contracts are needed to fix bugs and add features based on user feedback
The future of ICOs - Thoughts after beeing back from #DEVCON3
- 1. ICO CONFERENCE PARIS by What is the future of ICOs? What are the next steps? { "date" : "9th of november 2017", "name" : "Vidal Chriqui", "twitter" : "@vidal007" }
- 3. ICO will last for a long time • But with current rythm : • It will become more difficult. Crypto investors are becoming more professional • Amount raised should be lower than current figures
- 4. Ethereum Developer Community is « sicked » about #ICOs • « Concentrate on protocol upgrade and not on ICO » • « Protect your ETH by building tools and non-buggy wallets » • « We have the duty to fork any plateforme with useless token and rebuild it without token »
- 5. Still, #ICOs are financing even core developements & DEVCON3 • Universal Sponsor is an ICO (Status) that raised more than 100M$ • Half of Sponsors are ICOs • ICO teams are launching bounties to finance tools and core protocol
- 7. Regulatory simplifications to come – Ex. NPO lobbying by Coin Center • AML law boils dows to : is token used as a currency subsitute ? Is there a centralized issuer ? • Classification : Why is the token (Utility vs. Investment), What back the value (Network vs Issuer) • SEC like regulation scope should be reducing
- 8. Protocol/App Tokens (APP) VS Securities Tokens (ST) • Security Tokens and more generally asset backed tokens should dominate the market • Securities functions better as tokens (instant settlement, low fees, trading 24/7, accessible to unbanked) • New compliant plateforms will layout the infrastructure to enable T$ securities to migrate to the BC
- 10. The future points to ERC-223 • ERC-223 improves ICO interactions, backward compatible with ERC-20 • Ability to separate your contracts state from its logic, divided into three parts: “token-frontend”, “token- DB” and “token-logic” https://github.com/Dexaran/ERC223-token-standard
- 11. MiniMe Token (by GIVETH) • The innovation is that the MiniMe tracks the token distribution history on the blockchain • Practical uses : Governance applications/Voting system, Withdraw System (distributing rewards according to holding at a moment), Permisionneless Add-ons, (Discount, Reputation) Spinoff DAO, Upgradable tokens, Clone Token
- 12. MiniMe + ERC223 = Yoga Token • Candidate to because as the Standard Ethereum Token • Super flexible contract…Still, issue on gas consumption • "It´s not the strongest of the species that survive, nor the most intelligent. It’s the one that is most adaptable to change"
- 13. LiquidPledging • Liquid Democracy MEETS Fund Management • Manage your tokens or let somebody else manage them with oversight • Use cases : Organisation Management, Fund Management, Liquid Lending https://github.com/Giveth/liquidpledging
- 15. Why Upgradable Contracts ? • Extremely Young Technology / Solving unanticipated bugs at the contract level • Need to add new features based on user feedbacks • Solution suggested by ARAGON based on Upgradable libraries/ delegate proxies / Static Forwarders
- 17. Easier to invest in Cryptocurrencies and token sales • KickICO • ICONOMI • MelonPort
- 18. « Interactive Coin Offering » • “Potential buyers may enter and exit the crowdsale based on behaviors of other buyers, and in doing so tend the valuation towards a market equilibrium” • Allow buyers to enter bids for how many tokens they would be willing to purchase at different valuations
- 19. Conclusions
- 20. ICO – it is the future despite abuses • The GOOD : A futuristic mechanism for raising money and democratizing investments • The BAD : Capital Losses, Little Regulatory Compliance • The UGLY : Some very "wild" fundraisers and even some SCAMs
- 21. Thanks for your attention For curation on Bitcoin/Ethereum/ICO find me on LinkedIn : Vidal Chriqui Twitter : @vidal007