Feature

The topic of stablecoins has occasioned a flurry of discussion and activity in late 2017 and early 2018, not unsurprising given the potential of stablecoins to allow the expansion of the crypto community in a number of important ways. This articles considers two developing stablecoin projects that fall within the seigniorage shares category of stablecoins, exploring the particulars of their constructions, their relative positioning within the market, and significant challenges each is likely to confront.

While the appearance of Venezuela’s Petro attracted considerable attention to the issue of state-backed cryptocurrencies, little discussion has explored the forms these are likely to take, the impacts they are likely to have, and the broad, long-term impacts likely to result. This article begins to explore some of the core aspects of this issue.

2017’s token sale activity was marked by trends both well-known and more obscure. In an effort to peer behind those trends we explore ‘raise bands’ as a useful way to think about the token sale market.

Venezuela’s proposed Petro cryptocurrency has elicited numerous, impassioned reactions, but beyond the particularities of the Venezuelan context the Petro raises a number of more far-reaching trends related to state-backed, commodity-based, cryptocurrencies. This article begins to consider some of these wider issues.

Token sales and ICO activity in 2017 involved an incredible variety of projects. As a group, they show all the many ways entrepreneurs are applying blockchain technology and tokenization to sectors throughout the economy.

It is passe to say 2017 was a wild year for token sales / ICOs. Over 500 projects raised $6.5 billion during a time when overall crypto markets grew in size, awareness, and depth.

In this report, we share our thoughts on self-regulation within the token sale / ICO industry. It is in informed by countless internal conversation and debates throughout our network, the review of over five hundred different projects, and the dozens of notices and actions from regulators around the world.

Smith + Crown has developed a classification system for the various sectors into which blockchain-based companies are focusing their energies and integrated those results into our existing project database. Here, we outline our thinking on industry classification in the context of disruptive technology and show an initial look at what areas of the economy are getting targeted through token launches.

Market developments in October suggest the ICO market might be maturing. Of the 165 token sales that were scheduled to close in October 2017, only 40% were completed on time, suggesting a tightening market. While the number of sales and the total amount raised continues to rise, the average and median amount raised continues to fall–more signs the market is getting more discerning about who is getting funded. The number of projects raising $5 million – $40 million is also increasing, suggesting a crop of products and developments could come to the market in 2018.

Q3 2017 was another transformative period for the blockchain and cryptocurrency sectors. Particularly interesting is the range of trends that marked the quarter, the significance of which extend far beyond headline figures for completed sales and funds raised during the quarter.