Do you think that ICO can completely replace traditional financing from banks?

[digitalcoins]

Do you think that ICO can completely replace traditional loans scheme from banks?

There is quite a lot of successful ICOs now. Cryptocurrencies and ICOs exploit a very simple phenomenum - currency have some value because people add to them this value.
So, while mined currencies have obviously some invested values, in case of ICOs the value is often is a result of the estimation of the value.
So, let s say that some organization produces ICO coins like 3000 ICOCs and each of them costs 1 bitcoin.
They raise 3000 bitcoins and sell 3000 ICOCs. If people believe in the project, then they would avoid spending ICOCs and would rather spend their offline currencies, like usd, euro, roubles etc. therefore reducing offline currencies value and increasing crypto currencies values. So, let s say there was 1000 usd or 1 btc before ICO and after ICO it has converted into 1000 usd or 1 btc for the market added value. Why 1000 usd? Because we had 3000 btc and 0 ICOCs and after ICO we have 3000 BTC and 3000 ICOCs, each having value of 1 BTC and making total value in the market doubled and equal to 6000 BTC. Why 6000 and how it happens? Because currency value is based on the market belief that project is worth 3000 BTC and project therefore raises market value overall by bringing workpower of its team into the market and converting it into project value estimation.
Where this value is coming from? Simple. As I ve said, people prefer to convert BTC to ICOCs, rather than convert them to USD, EUR and roubles.

So, the value of ICOCs is coming by taking value from traditional currencies. Isn t it what we all are looking for? Taking money from traditional, inefficient markets and investing them into perspective markets, teams and technologies?

Therefore, cryptocurrencies, in principle, using ICO methods and making appropriate high quality projects can suck into themselves the global economics by providing funding to the commercially prospective projects, taking liquidity from offline markets.

 
Actually, I would say that this can create an entrepreneurship and venture funds, which will be specializing on ICOs and bringing investments to good teams.

Are you interested to become a part of such a project?

So, let s say we consider startups, which needs from 500 to 5000 BTC investments.
What can be universal algorithm and what team is required for making serial multidisciplinary non-scam ICOs?

1. Headhunting team - for each specific case, for brilliant ideas and strategies, headhunting team evaluates
2. Project scouting team - experts in different high technologies teams together with HR experts can scan startups (actually as well as more traditional businesses, but with exceptional teams) and find prospective, underevaluated teams/startups
3. Marketing/PR team, which would work on promotion of the project and ICO campaign.
4. Smart contract developer for pre-sale, ICO and bounty campaigns smart contracts
5. ICO preparation team – editing white paper, making web site design, making logo design, making pre-ico/ICO page etc.
5. The team and the advisors for the project itself

What do you think about such a serial entrepreneurship scheme?


So, whom do we need now?

•   Universal marketing/PR specialist, who can get in touch with other marketing people, distribute tasks to them and involve separate marketing manager for each case
•   Universal HR manager, who will be looking for professionals into startup teams.
•   White paper manager - person, who has good experience with white papers and can help in editing/shaping white paper
•   Designer for logo design, white paper design, web site design
•   Professional seed investments/startup investments experts/scouting, looking for startups on regular basis

So, if managed properly, ICO then can replace traditional funding sources.

[onemanatatime]

Slowly but surely, the value of the entire cryptocurrency ecosystem is growing in an ever expanding bubble. While on the other hand, consumer trust in banks continue to decline, and the banking cartel is slowly losing its grip on the society.

I think it's a little drastic to say "replace", but yeah sure, it'll either take a looooong time if things don't change, or some drastic change must come soon to turn the tides around. But eventually, the power will return to the people, and yes, banks as we know today will not exist in the distant future.

[PokerDiceMan]

ico and bitcoin never replace position bank function
but if business need investor and big money if fast and solution use ico selling
because never use guaranteed same loan in bank

[stomachgrowls]

ico and bitcoin never replace position bank function
but if business need investor and big money if fast and solution use ico selling
because never use guaranteed same loan in bank

You are right it cant really replace the tradition bank loans when we are talking about ICO it might be possible on online world or making crowdfunding but it wont work anytime as we pleased and does depend on peoples interest if they would decide to put up money or not.If they saw that you do have a good project then you might possible get funds but if not, you would still end up on making loan or requesting on banks once again.

[Populous World]

Hi, what your suggesting, sounds exactly whats out there at the moment. For example there are funds like Blockchain capital, Taas.fund to name a few. My thoughts on replacing banks as prime financing bodies using ICO's is a long way off for now, I say that because a lot of business is conducted in fiat currencies and we need to allow time for a shift in peoples mindsets to realise the true benefits in using cryptocurrency in global trade. I myself have started a lending business which incorporates some of the above you mentioned in your post, one of the first things that should be addressed is the risk aspect of the business. After all investors who put their money into such businesses or ICO's needs to feel that the project is viable and limited to a certain amount of risk and will provide a return in a relative short time span.   

[European Central Bank]

icos are against securities laws in many countries.

at some point the authorities will track down as many of the people doing them as possible and prosecute their asses into oblivion.

they better enjoy them while they last because bad things will happen one day.

[Populous World]

icos are against securities laws in many countries.

at some point the authorities will track down as many of the people doing them as possible and prosecute their asses into oblivion.

they better enjoy them while they last because bad things will happen one day.

Shows how much you know, it all depends on your country of choice, company structure and how the token plays a part in your project. by saying that icos are against securities laws in many countries is not entirely true. Not all ICOs are security related, you are basically saying tokens are assets.

[terrate]

No no ICO will not replace one.

first it is tech things to became coin. so no network no coin.
bank is got cash got asset got liabilities then got bank.

ICO can become zero because of volume.
but bank don't have the 'coin' ., their coin is country currency.
Only got their finance product but those are financial plan.

[terrate]

icos are against securities laws in many countries.

at some point the authorities will track down as many of the people doing them as possible and prosecute their asses into oblivion.

they better enjoy them while they last because bad things will happen one day.

That's difficult for online 'things' to enforce by authorities .
Because unless big banker or people got scammed by the ICO, or else will be nobody voice that.
Also no benefit, how got enforcement.

 

[the1arty]

If it will replace traditional financing, than new regulation and strict laws will come in place and will kill the industry..

[Kakmakr]

I think a crowd funded version of "Shark Tank" or " Dragon's Den" based on Bitcoin based projects would be the ideal environment to spearhead such an environment. We need "Early adopters" with loads of coins that would be willing to fund Bitcoin businesses based on merit and this must be linked to crowd funding.

The crowfunded coins goes into a pool and the knowledgeable panel < example : Andreas / Greg .... > can decide towards what projects these coins will go. ^smile^

[tycoonwhibbey]

Heaven Yeah.

You are absolutely right. They are being replaced. My fact
IN CRYPTOCURRENCY IT IS BOTH THE MONEY AND THE STOCK. LIQUIDITY REIGNS.
The younger generation will think it is right for the stock of a company to buy a bag of chips, everyday at anytime. These old folks gone die and we are going to control. The blockchain, freedom will be life.

[cahkalem]

i believe, just a few decade's from now, ICO will replace it,,,
this is a revolutionary of financial system,
everybody can be a part of this, not like a bank,,,

regards

[DNN]

It depends on what you need financing for. Some companies need financing to purchase products they want to sell or to rent office space or to expand their existing business.
ICO nowadays are based on promises that a group of people (sometimes not even developers) are going to deliver software, a network, a decentralized blockchain, etc...
In case of a regular business ICOs (as they are now) won't work so banks are still very attractive for them.

Also ICOs have not been regulated yet, once the SEC or other local authorities get involved we should see how the future pans out.

[vvadym]

I don’t think that ICO can completely replace traditional financing from bank in the nearest future, but it’s possible. It would be a long process. People have to be involved in ICO. More people in the system – the faster process goes. And banks, as everybody knows, could not exist in the future.

[Solve.Care]

It seems to me that it will be possible only in case of total revolutionizing today’s banking system. In some countries, ICO campaigns are simply prohibited. Also, Bitcoin network right now is rather weak, comparing to traditional banks, the system of which has been developing around the world for many decades. The process of taking ICO’s over IPO’s is realistic, but its complete replacement isn’t possible in the nearest future.

[OneUserOne]

It seems to me that it will be possible only in case of total revolutionizing today’s banking system. In some countries, ICO campaigns are simply prohibited. Also, Bitcoin network right now is rather weak, comparing to traditional banks, the system of which has been developing around the world for many decades. The process of taking ICO’s over IPO’s is realistic, but its complete replacement isn’t possible in the nearest future.

I agree. Apart from that, I think that banks could not be replaced because senior people won't fully trust ICO as they got used to traditional ways like banks, and anything different from it may get them really confused. Perhaps with time the situation of accepting ICO as so-called non-traditional way will change.

[carlfebz2]

icos are against securities laws in many countries.

at some point the authorities will track down as many of the people doing them as possible and prosecute their asses into oblivion.

they better enjoy them while they last because bad things will happen one day.

It would happen for sure on which there would really be a point on where they would majority implement restrictions or bans on these things.It is indeed opposes on the laws. Time will come that majority would really make such act and the first action have been done already by China. The question is,what country would be the next to do such act?

[aTriz]

With the recent news with china banning ico's does look like a surprise that this got bumped up back to you to the top of project development.

Before this situation with china banning ico's happened, I would definitely say that in the near future if ico's don't become more regulated, people would rather do this than ask the banks. Now, not so much.

[ASNT]

Well, it is only a matter of time before decentralized, people owned cryptobanks will rise. I think it will be more of an investment for creditors with an interest payout. However, securities would pose a problem as there would still be no legal way to pursue someone who wouldn't pay. Give it time and don't propagate the idea ICO's are a "gofundme" kind of scheme. Too many people gave ICO's bad rep, we should stick with serious projects that can actually offer something.