Rest In Peace and Good Riddance ICOs; Hello STOs

None other than Billionaire Mike Novogratz has issued the eulogy for initial coin offerings (ICO’s) and shoveled dirt on the coffin. Blamed (in part) for precipitating the huge selloff in the crypto markets this year, the “wild west” mentality of issuing ICOs is done. Fraught with fraud, shoddy business plans (if any) and unscrupulous operators, regulators (party poopers) basically shut ICO’s down. BUT, the very concept has ushered in a whole new way of to raise capital and monetize and tokenize assets. As Mike points out, tokens backed by real assets are the wave of the future. Security Token Offerings (STO’s) are IN. Of course the regulators will still be looking closely at all things “token” but that will actually be a plus (I really said that??) and bring legitimacy to the investing world. Read more below.
Bill Taylor/Fintek Capital

“…Mike Novogratz, former Goldman Sachs partner who now runs a crypto merchant bank dubbed as Galaxy Digital Holdings, recently told Bloomberg that the ICO market is “pretty much dead” right now.

“There was a lot of fraud, and there was a lot of hype, and people lost money,” stated Novogratz. “The Securities and Exchange Commission (SEC) was behind the curve, so they slammed on the brakes.”

“But the SEC doesn’t want to kill this innovation; we’ve spoken to them at length,” he added.

Novogratz believed that the ICO market is in the process of detoxifying itself, especially after an increase in scrutiny and crackdowns by the SEC. The bitcoin bull stated that the ICO market would undergo a complete overhaul before reappearing as a more compliant space to work in.

“I think you’ll see a market for security tokens—a real estate portfolio that gets tokenized, for example,” he explained. “These aren’t things that go from $1 to $1,000. They’re things that yield 14 percent, and they’ll be sold to qualified buyers. That sounds a heck of a lot less sexy, but you’re going to see that business grow.”

Novogratz is not the first finance veteran to have declared the death of the ICO space. Earlier, Barry Silbert also said something similar on the lines of the Galaxy founder…”

Full Story at Newsbtc