The ICO model has proved to be a very efficient way for tech startups to raise capital, with tools like airdrops and bounty programmes helping to keep them buoyant. As Michael Spencer writes at Medium, “an ICO is a powerful motivator to scale interest, attention, support and capital to a project.”
We must remember that we are still only in the very early days of a token economy — the mass adoption is yet to come. However, we are seeing a race an ICO is a powerful motivator to scale interest, attention, support and capital to a project.
Blockchain adoption is progressing: IBM’s investment in blockchain technology is progressing and we are seeing the blockchain mature in the enterprise, banking and fintech sectors. Furthermore, blockchain many of the biggest companies in the world are adopting blockchain in some way.
We may be moving towards a world based on token economics, and this could produce new forms of governance based on decentralisation that makes organisations more accountable. The loss of trust in companies like Facebook, Google and Amazon during 2018 could help to move along a shift over to blockchain.
These big corporations put profits ahead of people and have shown a distinct lack of transparency and integrity with regard to how they treat consumers. By contrast, whilst ICOs need more regulation, they still answer one of our most pressing problems: the loss of trust in centralised systems and companies, like those mentioned above.
Tokens are not just incentives for tech company growth; they also have the potential to improve the ethical performance of companies.
Crypto exchanges and crypto funds are expanding and the way we think about “digital assets” is changing month-by-month, showing that tokens and cryptoeconomics have a bright future and the potential to change how we do business across the world.