TR 22.09

//CAPITAL MISMATCH CONTINUES

Despite the hype, it’s important to remember that initial coin offerings simply represent a new process and technology for organisations to raise capital and achieve goals. The problem is, whilst the amount of capital raised via coin offerings now outstrips that raised from VCs, the number of companies attempting to raise via coin offerings is still trivial - easily less than 0.1% of the companies attempting to raise capital via the traditional route.

As a result, there is a vast mismatch between the supply of capital, and the number of companies demanding it - leading to the large early stage token/coin offerings we continue to see. However, the landscape is changing rapidly, and whilst wealthy crypto-capital holders will still not be able to spend their money fast enough, the number of companies fighting for that capital will increase. This is good. As is the continually rising standards expected from companies to receive funds.

Expect the mismatch to decrease, and as regulation continues to increase, and governance structures start to merge with traditional capital (as coins & tokens tend to securities) - we’ll be left with the real innovation: securities issued, transferred, traded and recorded on the blockchain - a process that hopefully will have democratised access/opportunity and increased transparency in early stage investing.

But on with the weekly round-up:

//MUST READS

  1. Vitalik, founder of Ethereum, talks at Disrupt.

  2. Bitcoin crash history

  3. Cambridge University Global Cryptocurrency Benchmark Study.

  4. Sam Altman, president of YC, on blockchain helping widen access to YC investing

  5. Colin McGregor enters the blockchain-game.

//DISASTER OF THE WEEK

China continues the clampdown on cryptocurrencies and has banned executives from leaving China, whilst last week’s winner, Jamie Dimon of JPMorgan, reiterates his ‘fraud’ comments - but separates the technology of blockchain, from governments’ desire to control their currencies - the core reason for his belief there is no future in bitcoin.

//TRACTION

  • Adoption of Segwit remains slow as debate continues ahead of Segwit2X.

  • Second largest Japanese travel agency accepts bitcoin and offers exclusive discounts for purchasing in bitcoin.

  • Carrefour Spain now sells Bitcoin via pre-paid cards.  

//ROAD TO REGULATION

//DEALS

Last week highlights:

  • Icon raised $43m for their decentralised network based on LFT consensus.

  • Enigma catalyst ICO raised $45m for data-driven crypto investment platform.

  • Propy ICO raised $16M for their property exchange that leverages the blockchain to provide safe transfer of property title.

  • Power Ledger ICO raised $17m to create a renewable energy network.

Upcoming:

  • Mingo - Sep 25th - gamified cryptocurrency education platform

  • HireMatch - October 1st - decentralised blockchain-based employment marketplace

  • Compsa - October 2nd- for centralized businesses to adopt blockchain technologies

  • Kimdotcom returns with the K!M publishing platform - October 3rd

//EVENTS

India Blockchain Week - Mumbai, India - September 22-26, 2017

Mingo first livestreamed pre-sale launch - September 25, 2017

World Blockchain Forum - London, UK - September 25-26, 2017

Tearsheet Hot Topic: Bitcoin and Blockchain - New York, U.S.A - September 25, 2017  

Next Money Chicago 2017- Chicago, U.S.A - September 26, 2017

Blockchain Middle East Forum - Dubai, UAE - September 25-26, 2017

SEC Live Stream of Advisory Committee meeting on blockchain technology - October 12, 2017

James Roy PoulterComment