Is the Old Crypto Investing Era Dead? Time for New Trends and Players
Posted by Susan California on June 7th, 2019
Let’s admit it, the majority of crypto investors up until 2018 were borderline gamblers and opportunity seekers. Of course, they wanted to see themselves as classic investors but in reality, the whole crypto ecosystem was only a little better than a “digital Vegas”, with a touch of multi-level marketing (MLM). This is especially true for investing into ICOs (Initial Coin Offerings).
It’s no wonder, though: if “investment opportunity” is has elements of MLM built inside – and that mechanism represents a major magnet for people to join and invest – guess who the “investors” would be.
After all, what was a Bitcoin five or so years ago? An investment opportunity, or a risky bet?
For me, investment means putting money into something that adds a substantial value to the market, has good foundations, and a healthy growth potential. Crypto enthusiasts say Bitcoin was always a sane and solid investment. Well today, it may appear so, because it survived. However it was an extremely risky bet.
Luckily, the market matured very quickly, especially thanks to ICOs. Many people see ICOs as “devil seeds”, mainly because their expectations of very high profits were not met or because they waited too long to sell the tokens that had lost their value substantially in the meantime.
But the main reason why ICOs gave – and still give – the crypto market a bad name is because of their non-regulatory and non-obligatory investments. Founders of ICOs can literally take the money, walk away with it and investors are left with worthless tokens.
However, is one side of the coin. In truth, the opportunity to invest in ICOs was one of the main momentums that pushed crypto-machinery ahead. Without insane opportunities to make 10x – or even 100x – their invested money, who would have been interested in crypto? Also, don’t forget, where else would the money have come from if not through ICOs? By buying Bitcoins?
It was ICOs that, like a turbo vacuum cleaner, sucked the money into crypto. The other element was the growth of Bitcoin, of course, but the growth happened after the golden ICO era because the market cap – a sum of all the money in crypto – had grown substantially. Basically, more money into ICOs meant more money into crypto, and more money into crypto created a hype and consequently, a rise of a Bitcoin star.
After the rapid growth of the price of Bitcoin, the media jumped on the train and started reporting about a “Bitcoin phenomenon”. That was the last drop to push the Bitcoin semi-mainstream in 2017.
The Death of an Old Crypto Ecosystem
And then it happened. People today speak as “the very necessary Bitcoin correction and consolidation” that was going on in 2018. But if you were around at that time, very few people believed that Bitcoin could go down to about .000.
At those times, end of 2017, “crypto enthusiasts” (read: greedy gamblers) were talking about Bitcoin going to 100k or even 350k. Well, after some whales took big money out of crypto and Bitcoin started sinking, the media started to warn about an “expected Bitcoin crash” and “the bubble that finally burst.”
The FUD (fear, uncertainty, and doubt) replaced FOMO (fear of missing out) and crypto market froze. The golden era of ICOs stopped, partly because of the Bitcoin drop, and partly because of new ICO regulations – or threat of new regulations – and even the prosecution of some ICO founders.
The logical consequence was a change in crypto approach. Bitcoin was no longer “King of kings” and ICOs were no longer huge opportunities. After all, why would someone invest in an ICO and then look at how the tokens drop, mainly because of Bitcoin going down more and more?
Technically, it was not the Bitcoin. The culprit was an Ethereum that represented a core of ICOs. When the core goes down, it pulls down everything that is connected to it, and ICO tokens were based on Ethereum, more or less.
When we look back at 2018 in five or ten years, we will probably see it as a very refreshing and breakthrough year for crypto. What official regulators didn’t succeed at – to protect investors – the market does itself by price droppings. Hallelujah, crypto crash!
Is 2019 a New Start for Crypto?
These self-regulations brought many good consequences. First of all, many people sobered up. They cooled down and now they can see the real picture. This doesn’t mean they need to withdraw their money from crypto, but they do have to have realistic expectations.
Secondly, ICOs are no longer money magnets for naive and misled individuals who expect 10x overnight. Now, if someone wants to invest in ICO, the sanity and healthiness of the project is what counts: does it bring real value to the market… does market need it and is it prepared to pay the requested price… is the team able to handle the project long term… and so on.
Inevitably, the core structure of crypto investors changed. Gamblers and easy-money-overnight seekers went on to Bitmex and similar exchanges where they can continue “gambling on crypto” via futures contracts and up to 100x leverage.
But what happens to ICOs? Maturity of the market provoked the rise of new forms of “ICOs.” The big players noticed the urge of investors for more certainty and stability, so the new forms emerged. For example, IEOs (Initial Exchange Offerings) that are brought to the market by coverage of crypto exchanges directly.
The main advantage of these “new ICOs” is an increased safeness, which means less risk for investors.
The Safe Direction for ICOs: Tangible, Measurable and Long-Term Projects
This is one direction that ICOs – I mean all forms of ICOs; IEOs and other similar structures – can go. Another other very logical one, is more tangible projects. The majority of classic ICOs offered some kind of “digital projects” that were literally unmeasurable. Moreover, no one was able to track the progress of the projects via milestones, because the team had nothing to show. How can you convince someone that your software – which was the main product of the majority of ICOs – is, let’s say, 70% done and performs as expected?
The “investors” had promises alone, with no guarantee, no compensation, and much less penalty in the event of the team and/or the software bombing.
The other problem was the structure behind ICOs. Not only the team, but the projects being start-ups with no guarantee for success.
The solution is more than obvious: the project should be more provable, tangible, based on the working model, and the final product should be in great demand. This is the other “elephant in the room” nobody is talking about: even if the project is performed correctly, the team must be able to make money out of it long term.
And that is the direction the crypto market is heading: a hybrid between IPO and ICO. Or, a clone of stocks and crypto currency. The crypto market would like to see the real, tangible value behind the projects.
Maybe we are heading to the next ICO era called “cryptangible economy” by Roberto Hroval, founder of PatentReal Corporation and old-school entrepreneur, with dozens of projects under his belt.
He says: “Projects should be based on tangible and highly valued technologies, must be autonomous and must be in high demand.” He emphasizes that “the processes must be made simpler and more transparent.” Also, the projects should be based on highly valued, self-directed technologies, which will ensure that there is high demand in the market for such projects.
Hroval even exposed some markets that would make a great impact on the whole crypto industry: artificial intelligence (AI), gaming experiences of all kind, ecology, new forms of energy, medicine, robotics, and automatization.
Introducing Project Phoenix8 and Product Reincarnation Technology™
It is no secret that he is preparing his own crypto project, called Project Phoenix8 (PP8) based on Product Reincarnation Technology™ (PRT) that transforms waste into energy, with a more than 98% utilization rate.
“We found a solution to two great worldwide problems,” he continues, “how to handle ever-increasing waste and how to get cheap energy. Our PRT process is totally green, an industrial process that we developed and tested for several years, out of our own pockets. The technology is verified by the world’s leading authority, Bureau Veritas. It is tangible, down to earth project, ready to expand fast. Members of our team have more than 25 years of experiences in the industry.”
“If we move high potential industrial projects to the crypto market, it’ll gain trust and a new era of developing will begin,” added the founder of PatentReal Corporation and PP8 project.
He explained further how the process works: “You put garbage on one side and get fuel or electricity, and some other highly demanding products on the other. The process is cheap because it is working at a low temperature, and other costs are also low. The other advantage is so called zero emission process, without emissions in to the ground, air or water. With other words, PP8 is a long-term, strategic and sustainable industrial project, solving global problem. Due to production of highly valued products that will be in demand for upcoming decades, the project represents a good, realistic investment opportunity.”
Roberto Hroval said the investors have already recognized the value of the project and bough all the utility tokens available in presale. “We are working on some minor stuff right now, but the project is ready to start in Europe.”
He concludes that there is nothing left to chance: “We have an excellent system for awarding investors in the long run. They have three ways to cash the tokens: they can sell them on the classic crypto exchanges or open market, they can buy end products – fuel – with it, or they sell it to the exclusive investment company.”
Project Phoenix8 from PatentReal Corporation, and its founder Roberto Hroval, will definitely bring fresh air into the crypto market. We all hope this will happen soon and that other big and renowned companies will also join the troops. After all, the crypto market offers some very unique and good opportunities for investors compering to other kinds of investment.
About the AuthorSusan California
Joined: August 12th, 2018
Articles Posted: 113
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