Prolonged Regulatory Uncertainty
There are potential ramifications for ‘prolonged regulatory uncertainty’ that often starts weighing on the project itself. For instance, in United States, issuers of ICOs are ill benefitted as close to 40% (effective tax rate) raised through ICOs go to the govt.’s coffers, which wouldn’t have happened in the case of PE-VC investments or an IPO stake sale. This is because regulators are not certain on considering tokens as securities, and thereby consider the token-sale as revenue generated from operations. Thus, this is a case for prolonged regulatory uncertainty and requires swift action. As over the long run, the advantages over costs through ICOs turn out to be disadvantages, once the whole process is screened …show more content…
The following standpoints aim at bringing into light the current market situation of the global ICO market.
• The biggest and most recent development in the ICO market has been the launch of ‘Petromoneda’, world’s first issue of a crypto-currency via an ICO by the sovereign government of Venezuela. This has been considered as a move to dodge U.S. sanctions and work as a stable currency in replacement to the plummeting, inflationary Venezuelan Bolivar. It is an issue of 100 million Petros (short for Petromoneda) backed by an equal number of oil barrels. [4]
• Prolonged Regulatory Uncertainty is likely to continue in the prevailing market situation, though the recent G20 Finance Ministers meet has made July 2018 the deadline to take unified regulatory action.
• After a year (2017) of explosive growth for ICOs (over $3.7Billion globally), the year 2018 is expected to be a year of significant correction and restructuring. This has already become evident through the recent decline in crypto-currency …show more content…
[5] This is likely to affect the global ICOs market’s credibility as an investing option.
• India-based blockchain start-ups have started venturing into overseas markets to raise money through ICOs. [6] Similar trends are being observed in countries such as China, South Korea where regulations are not ICO-friendly.
• ICO funds have also been coming up. Venture Crypto-Capitalists need to take guard and stabilize a market that has become increasingly susceptible to a growing number of individual failures. Crypto-Investors have started to realize that potential prospects for growth may not obviously transform to profits in business.
Crypto-capitalism has now started to unravel its potential applications and ICOs is just one of them that has incidentally turned out to be a better alternative compared to early-stage PE-VC investments for start-ups. In the light of the aforementioned, the following are some of the contemporary challenges and likely trends for the future of ICOs:
• ICOs may professionalize investor experience forever and soon become a predominant form of seed funding, making it possible for the democratic distribution of capital by allocating it to firms across the
There are potential ramifications for ‘prolonged regulatory uncertainty’ that often starts weighing on the project itself. For instance, in United States, issuers of ICOs are ill benefitted as close to 40% (effective tax rate) raised through ICOs go to the govt.’s coffers, which wouldn’t have happened in the case of PE-VC investments or an IPO stake sale. This is because regulators are not certain on considering tokens as securities, and thereby consider the token-sale as revenue generated from operations. Thus, this is a case for prolonged regulatory uncertainty and requires swift action. As over the long run, the advantages over costs through ICOs turn out to be disadvantages, once the whole process is screened …show more content…
The following standpoints aim at bringing into light the current market situation of the global ICO market.
• The biggest and most recent development in the ICO market has been the launch of ‘Petromoneda’, world’s first issue of a crypto-currency via an ICO by the sovereign government of Venezuela. This has been considered as a move to dodge U.S. sanctions and work as a stable currency in replacement to the plummeting, inflationary Venezuelan Bolivar. It is an issue of 100 million Petros (short for Petromoneda) backed by an equal number of oil barrels. [4]
• Prolonged Regulatory Uncertainty is likely to continue in the prevailing market situation, though the recent G20 Finance Ministers meet has made July 2018 the deadline to take unified regulatory action.
• After a year (2017) of explosive growth for ICOs (over $3.7Billion globally), the year 2018 is expected to be a year of significant correction and restructuring. This has already become evident through the recent decline in crypto-currency …show more content…
[5] This is likely to affect the global ICOs market’s credibility as an investing option.
• India-based blockchain start-ups have started venturing into overseas markets to raise money through ICOs. [6] Similar trends are being observed in countries such as China, South Korea where regulations are not ICO-friendly.
• ICO funds have also been coming up. Venture Crypto-Capitalists need to take guard and stabilize a market that has become increasingly susceptible to a growing number of individual failures. Crypto-Investors have started to realize that potential prospects for growth may not obviously transform to profits in business.
Crypto-capitalism has now started to unravel its potential applications and ICOs is just one of them that has incidentally turned out to be a better alternative compared to early-stage PE-VC investments for start-ups. In the light of the aforementioned, the following are some of the contemporary challenges and likely trends for the future of ICOs:
• ICOs may professionalize investor experience forever and soon become a predominant form of seed funding, making it possible for the democratic distribution of capital by allocating it to firms across the