Russian financial experts: next year it’ll be harder to capitalize on ICOs

FutureTech, a conference dedicated to blockchain and the future of financial technologies, was lately held in St Petersburg, Russia. It began with the comparison of venture market and ICO market, and as it was demonstrated, 20-30% of both cryptocurrency and venture startup investors live in the United States, and in some occasions, might be the same people.

ICO advocates, namely Danila Prozorov from Cashpokerpro, told that ICOs are much easier to establish and launch than other, more traditional business ventures. However, views like these were not in majority — many, including Konstantin Vinogradov from Runa Capital, Pavel Dmitriev from Zodiaq.io and Arseniy Poyarkov from DigRate, suggest that 2018 would become harder for ICO leaders.

Experts outline primary reasons why ICO project are going to become harder next year:

• increased legislation level (institutions will start to understand how to tax ICOs);
• ICOs which are not cryptocurrency funds will be gradually ousted from the market;
• many ICO tokens have no real value and investors will become more paranoid about this.

Another famous expert on cryptocurrency with Russian origins whom we all know as the founder of Ethereum also believes that 90% of current ICOs are doomed to fail. In conclusion, while many still argue if Bitcoin is a bubble, much more people seem to agree that the current ICO market has bubble features.