The Next ICO Funding Trends, According to a Leading Crypto Attorney
Jay Swab, a highly regarded ICO attorney, has shared his views on what’s next for ICO funding. The ICO field "is one of the fastest changing sectors I've ever seen”, says Swab. “It changes each week, like a snake in the grass twisting and turning."
One main trends, according to Swab, is changes around legal fees. Smaller companies and individual attorneys become more and more competitive, offering high-quality services and thus edging big legal corporations out.
Investors are becoming aware of scams and failed projects. They now pay thorough attention not only to the pitch/presentation deck, but to the White Paper and other documents. A working MVP is a must-have. They also investigate the network, team and technical model of the ICO. These are signs that a business is starting to mature. The nature of investment is also changing. "The next iteration of all this is the position of crypto portfolio manager," says Swab.
Another trend to watch is the functional model of a token: is it a utility or a security one? If the latter, then potential investors from the US are excluded. For those ICOs who want the US market however, "the hot area will be bifurcation. This will be about a dual token, meaning a security token, offered only to accredited investors (and with a 12-month lockup) and a simultaneous utility token to drive a fanbase."
Last, but not least - and this one is the most exciting for Swab - is the impact of ICO business on angels and VC firms operating in fiat. New business always implies new models, new collaborations and partnerships. How crypto and fiat players will coexist and what projects they will co-create remains to be seen in the near future.