The initial hype will give way to a more realistic view and many Utility Token ICOs will realize their use case isn’t working and will pivot.
Interoperability will put pressure on special-purpose tokens and demand opportunities for new challenges with real use cases and better reliability.
However trillions of dollars of assets will shift from traditional markets and trading platforms and will move into the security tokens market by 2023.
Opening Remarks - The dangers of complacency in the face of unprecedented opportunity
We live in exponential times, and the blockchain/cryptocurrency industry is itself one of the best examples of this. We have been given the tools to build anything and we cannot afford to copy the exact systems we set out to remake.
From the pace of chip development in the asic race, to the growth of capital moving into ICOs, to the development of technologies, frameworks and tools that build upon each other, we see example after example of innovation moving at record speed.
What is the real innovation made by crypto-currency exchanges? Strategic split and positioning of secondary-markets
Splintering of markets, with the first group being the new wave of institutional type clients. Exchanges serving these will aim to achieve full regulatory compliance in all jurisdictions of clients once the current uncertainty has cleared, assuming many of these customers may have no choice but to use them over ‘unregulated’ trading venues.
It may in the short term be difficult for these new ‘regulated’ exchanges to compete with existing liquidity pools. i.e. Many existing centralised exchanges usually do not have custody of their largest institutional client’s funds, and instead offer credit lines (since unlike the retail clients, there is no risk of these clients running away). These clients also can easily establish entities in offshore jurisdictions through which they already trade.
There will be additional uncertainty around allowing the trading of securities tokens and tokenised traditional asset classes, and with global customer bases, it is for the moment an impossible task unless focusing on just a small number of jurisdictions. Liquidity therefore is not likely to be high.
Are ICOs the New “Gold Rush”? The Role of "Security Tokens" and What makes Them Successful
In 2017, the implied market capitalization of blockchain-based coins and tokens rose from $2.4 billion to $373 billion, excluding bitcoins. To fully put this into context, in the space of only one year, the value created would rank thirty-second as a country measured in GDP, and it would be considered the tenth most valuable corporation in the world.
At the root of this growth are two transformational effects that blockchain technology offers our understanding of existing business models: First, it enables radical new business models, such as "decentralized/ownerless" and "better than free," and, second, it replaces the need for trusted intermediaries.
Currently, crypto assets develop into an own small asset class with funds, analysts, index providers etc. - all known from traditional capital markets. This also includes the emergence of new crypto funds and Initial Coin Offerings (ICOs) to finance startups and small companies.
ICO Listing Sites as Gatekeepers - Do We Need a Centralised Platform to Announce ICOs?
How can one figure out which promising initial coin offerings are coming up? As an enormous number of token sales occur at the same time, it is difficult for an investor to keep track. Therefore, hundreds of ICO sales trackers, listing sites, calendars, and data aggregators have emerged over the last few months. These sites compile a calendar of token sales and are a important source of targeted traffic.
Nevertheless, based on data from more than 15 listing sites and 1,100 ICOs, this masterclass will show that listing sites are not a reliable source of information due to poor data quality, misaligned incentives and intransparent selection criteria. But how should ICOs be announced? Do we need a centralised and trustworthy platform?
ICO Pitching Session One - 5 Minutes - 5 ICOs - 5 Investments
Hear all about our selected ICOs and join us for a unique opportunity to hear from the founders about their projects and vision.
Each team will have 5 minutes of the main stage prime time to present their ICO, moderated and challenged by our
Master of Pitching Sessions:
Regulatory outlook for platforms – how far does the regulatory net reach?
MiFID II, the EU’s legal and regulatory regime for financial markets, has redrawn how a number of financial markets and participants engage with one another and casts an exceptionally wide regulatory net when it defines a “multilateral system’ means any system or facility in which multiple third-party buying and selling trading interests in financial instruments are able to interact in the system”.
Being caught within that net brings with it supervisory obligations and compliance costs, but also commercial opportunity and certainty. With the types of token and digital assets diversifying as well as the platforms upon which market participants can access them growing and specializing, this panel considers the outlook for platforms and what the impact of full regulation might mean for platforms, ICOs and the wider market as a whole.
ICO 2.0 - State of Projects and Technologies for the German Mittelstand
The state of the projects and technologies in the crypto space exercises considerable influence in two distinct ways. One is the relative lack of “completed” or functioning projects amongst those having already completed token sales. This is neither surprising nor disappointing in itself, for projects take time to build. However, the reality of more than $14 billion having been raised with few projects actually completed and operating does represent a bit of headwind for the new projects looking to complete their own sales.
ICOs and the tokenisation movement have shown promising ways of solving these issues. However, utility tokenization is neither the right fit for most SMEs and Start-ups nor retail investors. Tokens will hence more and more embed security features as participation elements. Combining the financial system with what we have learned from ICOs will create a new investment ecosystem.
Improvements: sketching ICO´s with DAICO enhancements
ICOs use various concepts implementing the underlying tokens on the Blockchain. In 2017 we saw many different mechanisms of defining the actual price of a token during its sale. We will present the most used pricing mechanisms (auction, fixed price, dutch auction).
After the token sale a smart contract can act as an escrow that allows withdrawals of the invested capital based on different triggers and conditions. One proposal is the DAICO, which combines concepts from ICO and decentralized, autonomous organizations (DAO) in a smart contract. We will present this improvement of a traditional ICO to sketch ICOs' potential enhancements.
The future of ICOs and crypto asset management KYC / AML / Regulation and Beyond
Investing Conducting in a legally compliant ICO/TGE is more challenging than ever and government regulators are watching every move. Issues of Overliquidation, Scams and lacks of prefunding as well as unaudited token contracts marked many ICO fails last year.
Yet, confidently complying with the global patchwork of laws and regulations, and exploiting the vast opportunities provided by certain legal structures, can produce both peace of mind and also enhanced access to capital and customers.
Legitimizing Tokenomics: why “ICO” is a bad word in banking
Crypto-assets are a highly speculative asset class that belong as a small part of a well-diversified portfolio. While many of these crypto ventures will fail, some may reach lofty valuations if they become an integral part of the new blockchain economy. Many long-standing financial institutions continue to overlook crypto-assets, as “serious” bankers hold back from considering ICOs due to the mere culture clash of the crypto community and traditional investment banking world.
Regardless of how this duel plays out, the sudden surge in activity, extreme volatility, high failure rate, and high regulatory uncertainty of this new asset class suggests the need for a structured framework by which to assess and better understand the valuation and classification of these digital assets. Overall, a deeper understanding of the use cases of digital assets is critical, as is regulatory guidance that protects investors while providing a sandbox for innovation to continue without restraint.
Investment Banking in the Age of Blockchain: a vertically integrated ICO investment bank
As ICOs are quickly becoming main stream via STOs (security token offerings), the traditional investment banking model will be tested and some of the established players will likely disappear. In this talk I will share with you what investment banking model will likely prevail and which investment banks are already quietly positioning themselves for the blockchain age.
Auditing Smart Contracts - in demand for a toolset of challenges and rules
Ensure you take the correct security measures to protect your funds. 10% of money raised in ICOs has been stolen from hackers and almost all unaudited contracts contain security vulnerabilities.
Learn about the importance of smart contract auditing and how to account for it properly in the ICO planning process.
Market activity analysis and the secret Ocean Protocol mechanics of a successful Token launch
To describe market conditions as challenging during Q1 2018 would be a considerable understatement. It is a powerful indication of the token sale market’s continued strength that projects were able to raise such substantial amounts amidst the turbulent conditions and with markets generally declining throughout the quarter.
In terms of market activity, what is particularly striking was the high degree of correlation amongst market performance between various cryptoassets. The chart below illustrates this by looking at the network value of a handful of the largest cryptocurrencies, but the correlation extends across much of the entire sector, where relative outperformance was rather exceptional.
What parts do you need to conduct your token launch and make it successful?
The talk will offer an entrepreneurial look at the modules involved and gives practical insights from his experience with the Ocean Protocol launch.
BaFin Insights for Crypto Asset Investing – a Regulator´s Perspective
Last year, Initial Coin Offerings (ICOs) exploded into the limelight with an estimated 891 ICOs raising over EUR 6 billion. As the capital raising model was previously unknown, regulators had to start investigating the model and begin their determinations on the various legalities.
Focussing on Security Token Offerings a more defining and serious discussion is at stake. With all that money and hype pouring in and scam artists taking advantage of a new opportunity, regulators around the world are taking action and either introducing temporary bans, delivering warnings, or creating new rules.
The talk will give insights on the per case selection methodology practiced the BaFin regulatory protocol and showcase Best Practices as well as highlight the challenges of managing the Status Quo.
The regulation of ICOs: current state of affairs and a glance ahead
In our final panel we will bring together regulators and practioners from different continents to share their insights on best practice methods and discuss current developments in respect to their international backgrounds. This contextualization will shed light on the current challenges of the status quo and allow a glimpse onto what most probably is to come.
RAAY - The New Operating System For Banking - stress-testing real-life financial used cases
The ICO 2.0 is a compliant and absolutely secure form of financing that attracts not only retail investors, but also hedge funds, investment funds, banks and other professional financial institutions.
In order to close the gap between „wild-west“ ICOs with project teams on the run and a serious investment alternative for big money, both, technical and regulatory aspects have to be synchronized. In this masterclass, Michael Reuter will present and discuss RAAY - the new blockchain-based operating system that serves as backbone open for new financial products to be built on top of it. RAAY is based on the experiences Michael‘s company Datarella has made with developing and operating one of the best-known blockchain payment and accounting solutions, Building Blocks, for the United Nation’s World Food Programme.
Token Design from an Investors Perspective
Learn the fundamental principles of Value investing and how you can
apply them to Crypto Assets.
The world of investing and especially investing in crypto assets is a complicated place to navigate. The sheer volume of information available has only served to make the process more complicated and increased confusion.
In this Masterclass, you also learn filters to better evaluate or design Token Economies based on sound Value Principles.
ICO Investing for family offices, asset managers und private investors
Since 2016 more than 2.000 ICOs have been presented to the public. svs Capital Partners has performed an in-depth analysis of most of the top 50 ICOs by volume.
Based on this analysis we defined 12 key success factors. The masterclass will show the application of these KSF for investment decisions by case study. There will be ample room for discussion and q&a.
Opportunities and threats from a banking perspective -- Commerzbank’s approach to address the DLT and ICO ecosystem
Cryptoassets and token-based fundraising are here to stay -- as a new asset class, but their future success will largely depend on the coordinated approach of global regulators and policymakers to regulate and standardize this ecosystem to enhance market participants' confidence in these instruments. More importantly, blockchain technology -- which is what underpins cryptoassets, enabling the creation of a shared digital transaction ledger -- could be a positive disrupter for various financial value-chains.
However, driven by the high volatility of their valuations, cryptoassets could also pose risks for financial advisers in dealing with their clients. Banks as we know them will not disappear but it would mean significant changes in the way they do business.
General Data Protection Regulation (GDPR) “light“ – Opportunities and Challenges
The recently applicable General Data Protection Regulation seems to unsettle the market even more than the (assumed) absence of any ICO regulations. The new data protection regime has a cross-industry effect and triggers great uncertainty in everyone processing any kind of personal data.
Valeria Hoffmann will give a master class dealing with the main living issues of the GDPR, which will help the participants to better understand the legal background and the requirements of the newly implemented data protection regime and give them a high-level guidance in the current privacy jungle.
Cashlink - making payments as simple as possible
CASHLINK is a financial technology start-up based at the FinTech Hub of Deutsche Börse in Frankfurt am Main, which makes payments between private individuals and small businesses as easy as possible. With CASHLINK, SMEs can offer their customers extremely easy payments by direct debit, credit card or PayPal to pay their bills digitally. The product is currently being extended with the blockchain technology, for example by providing frameworks for companies to issue equity tokens for Virtual Stock Options and by providing crypto payments for SMEs.
Company contact:Benedikt Scheungraber
BitBond - first globally operated business lending
Bitbond is the first business lending platform that operates globally. Bitbond leverages blockchain technology and machine learning to connect creditworthy borrowers with lenders worldwide. We use business activity data from online sales, bank accounts, reviews and other sources for our machine learning powered underwriting. This enables us to deliver fast and flexible working capital financing for business owners.
To process payments efficiently across borders, we use blockchain based digital currencies. Headquartered in Berlin (Germany), Bitbond is a BaFin licensed financial institution and one of the few regulated companies in the blockchain space.
Company contact:Radoslav Albrecht
LitigationCoin – blockchain-based litigation financing
LitigationCoin is the upcoming revolution in the blockchain-based litigation financing universe. Issuing a tokenized participation right allows us to create an attractive investment opportunity for a wide range of investors. As litigation financier, we will buy mass-scale claims, enforce them and receive a share of the damage compensation.
To expand the investment universe and make the whole process more efficient, we are using legal tech methods that standardize the assessment, processing and enforcement of claims.
Company contact:Maximilian Voigt
Sisu - Financial Well-Being for Individuals. Frictionless.
Sisu aims to provide financial well-being to individuals and their families, without forcing them to spend time and effort. Sisu is developing an automated financial planning and implementation solution that is accessible through the online banking platforms most Americans are already using. This solution is intended to automatically aggregate and analyze financial data, and continuously implement small and manageable financial planning recommendations that are most appropriate for that individual’s specific needs.
Sisu anticipates that his results in little effort on the part of the individual in order to benefit, while banks implementing Sisu can generate new revenue streams by offering additional services in financial planning and asset management. Sisu is already in discussion with several Californian retail banks that have expressed interest in piloting the solution.
Company contact:Hans Overturf
WUNDER - Building the first blockchain-based decentralised new media art museum
The WUNDER Art-as-a-Service is operating at the intersection of patronage and collecting. WUNDER was created to eliminate barriers in the new media art world, empowering patrons to connect with and digitally support artists.
Company contact:David Dehaeck
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