Hi, I’m Crypto Gabby from Crypto Round Table. I strive to educate by producing regular high quality written research reports and video review on the latest ICOs
WOW!! What an phenomenal week that was in Singapore for Consensus week September 2018. Korea Blockchain Week was the first blockchain week I’d attended and I was already impressed but Consensus Week set a new standard. Zhuang (XSQ), your perseverance paid off and thank you for making it all happen. I read your article about the journey you embarked on to set up all up and what makes me excited to be in this space is seeing the show of support and unity you received from other players when you approached them about your idea.
Thousands of people, some even braving typhoons, flew in for what was seen as the biggest conference for the second half of 2018. The sheer number of events that were on each day was overwhelming. The only downside to this was that the 7 or so events that were competing against each other every night made it hard to decide which event was a priority as everyone was split up. A huge thank you to BlockVC (Kevin), Signum (Ian), Hashed (Alex), Kosmos Capital (Anton, Miles and Sheridan), EMX (Jim & Sohyung), Orichal Partners (Scottie and Marisol) , iCapital (Adi), Chainfunder (Alvaro)and everyone else. You guys all hosted amazing events at some stunning venues and I appreciated the invite to attend. My liver now needs to detox for the next month.
Without a doubt, the highlight of this week was connecting with so many people in the Crypto space, whether it be old friends or new friends. I thoroughly enjoyed our conversations about what’s been happening in the market and just crypto in general, which have summarised into the points below.
Here are some photos from the week:
- The majority of projects I spoke with who are in their raising stage have made the decision to hold back on their private, public sale and listing of exchange until possibly next year or until the bear market is over. This is largely due to pressure from investors since everything is heavily undervalued and coins which list now have seen a crash in price due to a lack of liquidity.
- Many ICO projects have been severely affected by the crash of ETH if they hadn’t converted the ETH raised during their sale to fiat back when it was around $800. Although some had initially reached their hard cap, the loss in valuation has meant they have been required to quietly resume raising in a bid to re-raise the up to 70% of funds which have been lost. This has been a struggle for some projects which had publicly announced they had reached hard cap as they have had to resort to asking funds to invest more than their original amount and consider holding another round of public raise.
- I have noticed a dramatic increase in the number of advisory firms or some type of consulting service judging by the people I have been meeting at events. This I feel is largely due to projects realising it is a lot harder to raise funding now than back in the bullrun period of 2017, where everyone was easily meeting their hardcap with no MVP (minimum viable product). Projects now need to have a proper team to execute the idea, business plan and not just a whitepaper to appeal to investors. Due to a lot of projects turning out to be scams and investors having lost a large percentage of the portfolio during the bear market, investors are a lot more cautious with what they choose to invest in. Projects are often analysed on the team, venuture capital funds which have already invested, the technology behind the project and whether there is the potential for mass adoption.
Venture Capital Funds
- There are a lot of VCs who adopted the strategy of only investing in ICOs pre 2018 during the bullrun. Unfortunately many of them are now on the brink of collapse or have lost a large percentage as they held onto tokens which are heavily undervalued or invested in projects which have delayed their token listing until after the bear market. Due to this, they have had to scale back in their investments.
- Many VCs are now moving from traditional investing to into other areas such as market making, OTC, secondary trading and incubation to prevent themselves from being in the same situation as mentioned above. Funds like Kenetic have started focusing more on advising and incubating whereas FBG have already started doing everything I mentioned previously
- VCs have also started to request equity instead of a token allocation to limit their risk since tokens can be worth $0.
- Crypto’s total market cap has fallen from a peak of around $827 billion in January to a low of around $218 billion this week. The sharp decline in the unstable value of ETH has led to capitulation where many investors are giving up any previous gains by often panic selling when prices drop so they can exit their positions. Capitulation generally reflect the final bottoming-out of a market and the beginnings of a turnaround however it seems more likely that the market will continue to range around these numbers until the bullrun that is predicted for the second half of 2019.
- Gone are the days of the euphoria experienced at the end of 2017 when we were making gains every day and everyone has been quite pessimistic especially when major coins like ETH reach new lows below $200. I however, prefer to look at the positive side of things.
- This bear market has gotten rid of the bad actors, speculators and inefficient players which is needed for long term growth and adoption for people who are here to stay
- It’s also provided new opportunities for us investors to buy back in at low prices while we wait for the market to recover
Utility Tokens vs Security Tokens
- Utility tokens will likely disappear and what will exist will be a hybrid form of ICO and STO in 3–5 years’ time due to incoming regulation. STOs are still new and have not been released yet so there is much speculation surrounding whether it will be adopted by the institutional players or current market investors.
And that’s a wrap for Singapore Consensus! The CRT team will be hitting up the following conferences below. If you’re heading to any of them as well, please join the telegram group. =]
- Dubai World Summit + Satoshi United 22–25 Oct 2018 (https://t.me/dubaiworldsummit)
- Prague Devcon 30 Oct- 2 Nov 2018 (https://t.me/praguedevcon2018)
- Malta Blockchain Summit 1–2 Nov 2018 (https://t.me/maltablockchainsummit2018)
We’ve created these groups so everyone who is going is able to communicate with each other and we have also created a spreadsheet which will show all the private events that will be occurring surrounding the conferences.
If you’ve been enjoying the content I’ve been producing, please invite your friends to join our Crypto Round Table community =]
- Discord: https://discord.gg/3xvH3qy
- Telegram: https://t.me/cryptoroundtable
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Some more happy snaps from last week: