In 2017, about $7 billion was invested into ICOs. When this sum adds to the amount invested in 2018, it amounts to about $20 billion. Therefore, it’s clear that ICOs have threatened to affect venture capital across the board. But, recent signals suggests otherwise. The signs reveal that investments in venture capital will rise soonest. As preferences will tilt towards venture capital again.
Crypto market winter
Recent investments in some products has given indicators. The investments in Binance, Kucoin and Imtoken. But, a relative is close, major industry experts told an audience at the TechCrunch Disrupt Berlin event. This was in conversation with TechCrunch’s Mike Butcher.
The crypto winter is here. This has led to crypto companies laying off their staffs to cut costs. The market is also moving south in terms of financing, but things are not as bad as they seem.
Changes will bring stability and legality
According to CEO of Mattereum, Vinay Gupta, the changes are steps in the right direction. The changes may bring about stability and legality.
Gupta added that the altcoin fuse began once it was easier to carryout operations on Ethereum. This is it did not require running a decentralized network. One could simply write an Ethereum script and then run it on a smart contract.
Majority of the projects have acquired good success, while some have not.
But, they have all been properly regulated by the securities from the beginning. This is because they were raising money directly to the general public.
According to reports, Gupta also has plans to raise capital equity-based for Mattereum.
He said that there is still an important role for traditional venture capital to be a part of company building in the blockchain space.
To him, the traditional venture money is still very important. This is because venture capital put a lot of skill on the table. Thus, venture capital is still an important part of the procedure. This is despite past examples of companies raising tens of millions of dollars through token sales.
Proper regulations to take place
The governments are still fully around, the internet is also involved. Therefore, a settlement with regulators was always inevitably.This will also enable the security and exchange commission (SEC) are able to properly regulate the system. “When the regulated exchanges come up, it’s all going to straighten itself out”, Gupta said. But, by that time the blockchain wild west will be more like regular finance.
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