Today marked the official start of our ‘Understanding Blockchain Technologies & Markets’ live stream for the Newconference, run by NEWconomy Media in partnership with The University of Blockchain and ICO, sponsored by ASTRA – Astra International mining pool and Crypterium.io. The conference is being broadcasted, worldwide, from our website from today (Monday, December 10th) until Thursday 14th. Our panelists and moderators received a fantastic welcome from all those that tuned in to watch Monday’s blockchain and cryptocurrency experts tackle important topics. The video can be viewed here.
Summary of First Stream: ‘Investor Relations in Blockchain Projects’
Our first speakers included Jack Huang, UBAI Advisor – The University of Blockchain and Investing (UBAI) and Kristina Semenova, Investor Relations – MicroMoney International. Both panelists combined their respective expertise to answer questions from the moderator.
Jack drew comparisons between the development of blockchain with the birth of the internet; with its unexpected development, evolution and business models. He importantly made the distinction between promising blockchain technology and token issuance, two subjects which are often conflated.
Kristina highlighted the pitfalls of scam projects and ICOs, with 700 tokens already worthless. As a result, investors and people began to question whether blockchain and cryptocurrencies were existing within a financial/hype bubble. However, the promise associated with drastically lowered business costs, amongst other advantages, outweighs the potentially negative connotations.
Summary of Second Stream: ‘Crypto Campaigns: From Zero-to-Business’
Anton discussed the advantages of testing any business idea in a controlled way, developing a small prototype over a few weeks. Only if the idea gains traction is it then advisable to seek greater funding for development. His work and success in business so far have demonstrated the effectiveness of this approach, alongside building a loyal customer base. He also believes STOs will soon almost entirely replace ICOs, with consumers able to invest in micro-businesses.
Dan also drew on his extensive business success and experience, providing invaluable feedback for how to spot cryptocurrency scams (if it looks too good to be true, it probably is) as well as warning against blaming a naturally failing business. He also exemplified the vast benefits of token exchanges, as opposed to ICOs, which although raise initially ‘smaller capital’ build a vastly more loyal community and investor following. This business tactic has been used to great effect in Japan and other Asian markets. Both Dan and Anton couldn’t emphasize the importance of community for successful business launches!
Summary of Third Stream: “Non-Fungible Tokens”
Matthew spent 12 years in China prior to founding Fort NFT Protocol, as sees the finance landscape drastically changing with the adoption of non-fungible tokens. By providing an underlying asset that backs a digital token, traditional buyers are given a sense of security with their investments, such as gold. The cost-efficient savings for an industry like real-estate, through the employment of NFTs, creates a substantially more liquid ‘asset flow’ state for both the company and investors.
Specializing in the listing of digital assets, Garry Martin and his boutique digital IPO consultancy SCTAG, help fintech companies strategize and go to market. The ability to prove the providence of the underlying asset will become an incredibly important, and lucrative marketplace into 2019-2021, and cannot be overstated. Liquidity in secondary markets, therefore, will be helped substantially by NFTs. Digital listings, as opposed to IPOs, are predicted to come into their own in Q1 and Q2 of 2019, providing increased access to funds and cost-saving listing mechanisms.
Summary of Fourth Stream: ‘To The Moon, or it’s not at the bottom yet?”
Because ICOs were not considered securities, until potentially recently, both investors and companies were able to hyper-inflate the valuations of these projects. As a result, most ICOs didn’t reach their first business milestone, causing investors to panic and the current bear market downturn. On echoed Chris’ and Brunellos’ comments concerning the ‘end’ of ICOs, morphing into compliant STO marketplace substrata of economies.
Brunello believes the distinctions, or lack thereof, between utility, security, and payment cryptocurrency tokens have been partly to blame for negative market volatility within the current legislative climate. Lack of regulation brings ‘non-standardized’ behavior and therefore a major market correction as the bubble bursts. Brunello noted that whether we are at the ‘bottom’ of the correction is hard to pinpoint. However, the silver lining from this lack of certainty is that the resulting boom from the securities markets will overtake any valuations seen thus far.
Chris noted that there are many forms of cryptocurrencies and that any asset has value largely based on supply and demand. Current price valuations are therefore hampered due to the severe lack of liquidity in mature and nascent markets, compounded by government crackdowns on the transference on cryptocurrencies. People are therefore trying to get their ‘cash’ back no matter the cost. Chris moots blockchain’s advantages, but lack of potential direct investability in the technology. Security tokens offer the greatest value in terms of both a dividend and underlying rights to the company, without that company having to be public (reporting issuer).
This was a busy and insightful set of live streams, with fantastic contributions from our panelists. Make sure to follow us on social media, for more great articles and insights, and to join us for the rest of our New Economy Online Conference.