Only 10 ICOs likely to survive five years

Tuesday 20th of March 2018

Only about 10 of the thousands of bitcoin companies springing up through international coin offerings are likely to be viable businesses in five years’ time, nChain Group CEO Jim Nguyen told delegates at the ASEAN Gaming Summit.

Nguyen, whose company is at the forefront of blockchain research, said he has been frequently approached by ICOs seeking investment, with many capitalizing on the current speculative frenzy surrounding cryptocurrencies to raise capital for unrelated businesses.

“My rule of thumb is that if you are trying to use an ICO to raise money that you will use as operating capital for your business, which is what they mostly do, then it’s probably going to trigger securities law.”

“I’ve told every venture that has approached me for an ICO that I might consider them if the token has some technological functionality beyond just raising money and two if they are securities compliant.”

Panellists also agreed that the market is likely to stabilize in the next two years with Bitcoin cash emerging as the market leader and other cryptocurrencies falling away.

Nguyen confirmed a target for a May release of a 32 megabyte block for Bitcoin cash that will greatly increase the capacity of the currency.

Interactive Gaming