I just spent the last week in Shanghai and Singapore (Cumberland Crypto Summit). The Cumberland Crypto Summit was one of the best events I’ve attended this year, as the attendees were top-notch and discussions were insightful. Cumberland did a great job planning so kudos to them.
Some insights derived from the week:
1) ICO funding has dropped significantly recently. I’ve definitely noticed a tougher time for projects in the United States, especially some of our portfolio companies, to fundraise. Funds don’t want to liquidate positions when the market is so slow, some are wanting to move positions into BTC instead of investing in newer projects, and projects are also lengthening their issuance/vesting schedules. Reports are confirming this decline, as $326m was raised in August 2018, the lowest monthly total since May 2017.
2) Regulations have made it tougher for ICOs to get started in Japan. In addition, since the Coincheck hack, the government is becoming stricter about crypto exchanges’ attempt to merge existing financial institutions with them.
3) It’s not technically illegal to do an ICO in Korea.
4) While numerous reports are that the price of Ethereum has come down recently, some factors that can contribute to more value are proof of stake, the levelling of supply, and burning of tokens.
5) Security tokens of venture capital fund ownerships make sense in South East Asia, as there are no secondary markets for fund ownership. The reason for the excitement of tokenize VCs is that even though it’s not a new concept (other VC funds have been listed on exchanges), tokenization can provide greater liquidity which is lacking for existing exchange-listed VCs.