Initial coin offerings, or ICOs for short, are the latest craze in the cryptocurrency world so let’s try to make sense of the current situation surrounding ICOs and their interesting market

One of the most hotly debated (as well as most controversial) aspects of the current cryptocurrency sphere are so-called initial coin offerings, also known simply as ICOs. These forms of digital fundraising employ the use of cryptocurrencies in a way that allows project owners to raise bitcoins or ethers from thousands upon thousands of future users interested in the app being developed.

ICOs employ the use of cryptocurrencies in a way that allows project owners to raise bitcoins or ethers from thousands upon thousands of future users interested in the app being developed
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Unsurprisingly, ICOs have become a popular means of fundraising for startups in recent years. The lack of regulation allowed them to raise money quickly in return for so-called tokens, also described as digital certificates – at least that was the case until recently.

Nowadays, the ICO boom is beginning to stall a bit as a growing number of regulators worldwide turned their attention to ICOs and have decided to come into action. China, which is a country that once led the world in the number of active ICOs, recently decided to ban these fundraising altogether.

China, which is a country that once led the world in the number of active ICOs, recently decided to ban these fundraising altogether.
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In the meantime, US SEC, Singapore, Hong Kong, and Russia followed China’s example to some extent, but – at least for now – they are still not ready to completely ban ICOs. They are, however, diligent in their efforts to heavily regulate them even if that means taking away some of the key elements that made this fundraising principle great in the first place.

This has obviously caused a lot of disruption among the ICO community. Consequently, the number of active projects keeps falling off and the general interest in ICOs keeps plummeting. This is, after all, rather logical – less and less people are encouraged to either invest in or launch an initial coin offering as regulations are stagnating some of the field’s most popular markets.

While many still see the benefits of ICOs, others think it may be time to pull the plug. So who’s right?
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And this is where we find ourselves at this point – while many still see the benefits of ICOs, others think it may be time to pull the plug. So who’s right? Should we already be looking for a new alternative to venture capital?

Here to help you make up your mind is an infographic by BTXchange, created to shed some light on the initial coin offerings. It takes an uncompromising look at ICOs, using layman’s terms to explain both what these kinds of fundraisings are and what they offer to project managers and investors.

Tom Atkinson is a Digital Producer & Photographer at R3Digital and Reviews & Dept. Editor at Tech Trends. Connect on LinkedIn and follow him on Twitter @R3Digital

The post Infographic: ICO Roundup! appeared first on Tech Trends.

CB Insights just published its Q1 Global Fintech Report, which paints a picture of a healthy industry on a growth path.

CB Insights Q1 Global Fintech Report paints a picture of a healthy industry on a growth path
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The report covers a wide variety of subsectors that come under the “Fintech” umbrella, including:

• Lending tech

• Payments/billing tech

• Personal finance/wealth management

• Money transfer/remittance

• Blockchain/bitcoin

• Institutional/capital markets tech

• Equity crowdfunding

• Insurance tech

Some of the report highlights include:

22 fintech unicorns globally valued at $77B: The second most highly valued fintech unicorn in the US, SoFi, raised $500M at a $4.5B valuation. China Rapid Finance, valued at $1B, filed for IPO on the last day of Q1’17.

European burst of fintech investment: At the current pace, Europe fintech deal activity is on pace to top 2016’s total by 57%. In Q1’17, two companies (Atom and Funding Circle) raised $100M+ each (compared to no $50M+ financing rounds in 2016).

US fintech is on pace to see deals, dollars drop in 2017: At the current run rate, US fintech deal activity is on pace to fall below 2013 levels.

You can access the full report via CB Insights

Alice Bonasio is a VR Consultant and Tech Trends’ Editor in Chief. She also regularly writes for Fast Company, Ars Technica, Quartz, Wired and others. Connect with her on LinkedIn and follow @alicebonasio and @techtrends_tech on Twitter.

The post Report: Global Fintech Sector Boom Continues appeared first on Tech Trends.

The amazing growth of crowdfunding means everyone wants a piece of that action. But although the industry is worth an estimated $5 billion globally, it’s not all about the money.

Not only can crowdfunding help get money for your project, but it can be the perfect marketing tool
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Sure, crowdfunding can lend a hand in providing much -needed financing for your idea, but it can also be the perfect launchpad for “the next big thing”. Oculus is a case in point, a company that began life as a Kickstartercampaign and went on to be acquired by Facebook for $2 Billion this year.

With so many great crowdfunding ideas to choose from it's a lot harder to get noticed
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With so many great ideas to choose from, however, getting noticed in the crowd is also getting a lot harder. Gone are the days when you could get away with badly spelled copy, boring rewards and sloppy videos. Those are now the minimum standards for any campaign worth its salt, and there’s really no excuse, as platforms like Indiegogo and Kickstarter make it easy to put together a nice page. On top of these basics, there are 3 key things that can really make a difference to crowdfunding success, and while working on several campaigns I learned from people in the trenches what they are:

1 — Set your target amount low, and exceed it early

A high target can put some supporters off, especially at the start of the campaign, when it can seem too large a mountain to climb. Ideally, you want to reach over 30% of your target amount in the first few days of the campaign. That gives you a lot more chance to get promoted in the platforms, and creates a buzz of excitement around the campaign. You can always exceed your target, and that looks good too. The trick is to go as low as you can, while still being confident that the minimum amount you set is enough to keep your promises to the community, so keep this realistic, and be honest with your supporters. One recent example where this went really well, as a campaign run by Ramen VR for the virtual world, Zenith. They initially looked to raise an initial $ 25,000 USD and easily achieved that within several hours. It’s been so successful that Zenith has managed to raise just over $ 167,000 with a month still to go.

It’s not a Monty Python restaurant, so Spam is definitely not on the menu where it comes to Crowdfunding
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2 — Communicate constantly and creatively

It’s not a Monty Python restaurant, so Spam is definitely not on the menu. What you need is to have a solid plan of how you will roll out relevant content across all your social media channels, engaging your existing supporters and encouraging them to bring new ones on board. Shareability is key, so think interesting visuals, video, multimedia, games, and text content that will intrigue and delight your community. Someone at Indiegogo once told me that “Crowdfunding is just another word for marketing, and a successful crowdfunding campaign demands around-the-clock promotion. In today’s technocracy, that translates to constant tweets, relentless Facebook status updates, email blasts up the wazoo, sleep strikes, the occasional hunger strike, and any other means by which to keep your project on the minds of your friends, family, and supporters”.

Shareability is key, so think interesting visuals, video, multimedia, games, and text content that will intrigue and delight your community
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3 — Leverage influencers

Think long and hard about what the audience is for whatever you’re crowdfunding. When you have that picture firmly in your head, start thinking about the type of person that audience is likely to listen to, especially on social media. They might be celebrities, or simply trusted influencers in their field, but getting them on side is key to energising your campaign and giving it that extra reach and momentum. Do your research and find things about yourself and your campaign that would interest those people, and reach out to them proactively with any means at your disposal.

Think long and hard about what the audience is for whatever you’re crowdfunding
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Remember that there are many benefits to crowdfunding when it’s done right, and these certainly go beyond reaching your money target. Film director Ashley Thorpe from Carrion Films, currently producing an animated short about Borley Rectory, used his Indiegogo campaign to grab the attention of the likes of Julian Sands and Reece Shearsmith, who are now taking part in the project. He’s in no doubt that crowdfunding elevated his company’s status and potential in spite of the campaign falling short in financial terms. “With the reward costs and fees deducted, we were left with about half of the film’s budget in the end, but I have raised the profile of what I’m attempting to do tenfold, and made connections with groups of people that I never thought I’d get to work with”.

Alice Bonasio is a VR Consultant and Tech Trends’ Editor in Chief. She also regularly writes for Fast Company, Ars Technica, Quartz, Wired and others. Connect with her on LinkedIn and follow @alicebonasio and @techtrends_tech on Twitter.

The post Successfully Crowdfunding Your Idea appeared first on Tech Trends.