Thursday Links

  1. Guide to launching an initial coin offering – by Chris McCann. Given the relative newness of ICOs, he acknowledges it’s an evolving process:

    Given the blockchain industry is relatively new, there isn’t a whole lot of information on the topic (from a project’s perspective), and with each new ICO, teams are learning best practices on what to do and what not to do. Below is a guide of all of the information we collected about the ICO process, with input from people who experienced the process first hand…We will update this post with changes as we collect them.

  2. Brett Winton on How to Value a Cryptoasset. This is a precursor to Chris Burninske’s post, which we mentioned last week. Definitely still worth a read.

    At the simplest level, the network’s value is determined by the value of tokens that get held aside in user wallets to facilitate the network’s transaction flow.

  3. Lawrence Lundy on Convergence and the larger scale implications of blockchain:

    This means we constantly underestimate the pace of change and as software eats more industries, improvements compound as traditionally human-centric industries like healthcare, logistics and agriculture digitise. As these industries come online and capture, process and automate data; ownership of this data will define the state, market and nation over the next half a century. Blockchains are therefore one of the most significant technological innovations since The Internet and fundamental to Web 3.0.

    The development of blockchains is a good example, as exceptionally talented developers push the boundaries of cryptography with zero-knowledge proofs and smart contracts but fail to see the implications on broader governance structures and political philosophies.

  4. CB Insights’ published Blockchain Investment Trends In Review with lots of analysis and data on the amount being raised both via VC and token sales.

    The steady decline of early-stage equity deals may indicate that blockchain, like other emerging technologies, is undergoing the evolution from creation, to crowding, to consolidation.

    However, according to CB Insights data, blockchain’s consolidation may be tight, with blockchain companies failing at a higher rate than tech startups in other areas. Of 103 blockchain companies that received initial seed or angel funding in 2013 – 2014, only 28% managed to raise additional funding, and just one company made it to Series D: Japan-based cryptocurrency exchange, bitFlyer, with a small $1.8M round.

    In comparison, of 1,098 tech companies we tracked that raised seed rounds in the US in 2008 – 2010, 46% raised a second round of funding. An additional 14% went on to raise a fourth round of funding, versus blockchain’s 2%.