Whoever thought that the record set in 2017 for ICO raises was set in stone, will have to reconsider once the high profile 2018 projects hit the market. This year, it seems the big corporate players – Kodak and Telegram so far – will be playing catch up, creating token sales that could eclipse the record raises we saw from Bancor, EOS, Tezos and FileCoin last year. Nevertheless, these ICOs will come with a drawback: They are more likely to be sold to accredited investors only, prompting questions about the spirit of these sales and their philosophy in a world in which Wall Street and institutional investors are finally catching up.
Ethereum Will Not be The Cool Kid of the Class Anymore
These corporate players have the necessary muscle to launch their own blockchains and they can command the kind of investment necessary to make it worthwhile. Therefore, Ethereum will probably cease to be the largest ICO platform out there; it will probably be replaced by institutional investor-powered blockchain projects worth billions. Telegram for instance, will be looking to raise $1.2 billion USD from accredited investors, according to reports. A $1.2 billion USD ICO on Ethereum, could make the price of Ether skyrocket beyond any point imaginable, but these corporate ICOs will not be launching on Ethereum.
The Crowd Will Not Provide the Funding and Will Not Enjoy the Benefits
This probably means that the crowds that gave Bancor, EOS, Tezos and FileCoin almost $1 billion USD combined, will be largely left out. They will not be able to enjoy the benefits that come with these huge corporate ICOs, unless they are willing to play the old game of setting up an investment account and paying the fees necessary to buy the stock of these corporations. Kodak stock holders for example, saw their investments skyrocket on news that the struggling former icon of the photography industry is planning to release a token to manage image property rights.
Will Mainstream Media Start Yelling “Bubble” When Corporations Join the ICO Craze in 2018?
Telegram and Kodak ICOs combined, have the potential to match the amount raised by ICOs from January until August 2017, according to Coin Schedule stats. But will this prompt mainstream media to cry “bubble” just like they did with the ICOs in the space? Hopefully they will, especially because some of these corporate ICOs will inevitably fail to achieve their stated goal, while raising significantly larger amounts of money.