Daily Fintech Conversations

How do you evaluate the next big thing?

With all these ICOs springing up left, right and centre, I’m continuously bombarded with requests to publicise the “next big thing”. Blockchain will cure the evils of any industry while generating tokens connects innovation with capital like never before and democratises participation in groundbreaking ideas.

Conventional wisdom also tells us that 80-90% of all these ideas will disappear without trace. So how to evaluate an idea written on a scrap of paper? Last summer I spoke to a guy from one of Switzerland’s biggest private equity firms. He was bamboozled by the crypto start-up scene. Start-ups asked him to evaluate their project, but gave him nothing in the way of traditional evaluation metrics. “Smoke and mirrors” was how he put it.

Now we’re seeing ICO ratings agencies springing up. One even presented me with the novel idea that ICOs can be judged by applying behavioural game theory - throwing a bunch of personal questions at a start-up and analysing the answers. A look at any social media platform will reveal people scoffing at ICO raters. We are now in the bizarre situation of the ratings agencies being rated.

So in the brave new world of companies that aren’t really companies and shares that aren’t actually shares, what metrics do we use to evaluate these ideas: the team, the technology, the marketing, the financials? And which are the best ICO raters out there?

2018 is the start of a new global beginning for token offerings:

  1. ICO is initial coin offerings ( 2017 98% of the offerings where actually Token Offerings
    Utility token

  2. ITO (Initial Token Offerings) 2018 will be a great year, and the best ones will be security token

because you wont be con into a scam as most ICO’s are

Security Token companies will need to be real
follow regulations in each country
investors will have that protection

we will also see more companies raising capital via online platforms that are operated by Broker Dealers like: Elara, CoinList, BanktotheFuture

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