CoinList Co-Founder Believes the ICO Ecosystem Is Still Early, Difficult to Gauge Outcomes
Andy Bromberg, the co-founder and president of CoinList, a platform for digital asset companies to manage their token sales and for investors to discover high-quality projects, believes that the ICO ecosystem is still in its infancy and that it is far too early to properly gauge outcomes.
In a recent interview on Bloomberg TV, Bromberg shared his thoughts on the current state of affairs within the cryptocurrency market, specifically touching on recent data showing that capital raised from ICOs hit a 16-month low in August.
Providing a comparison to traditional startups, Bromberg emphasized just how early it is to say whether or not an ICO is a success or failure. Given that many of these projects are less than two years old, it stands to reason that more time is needed to properly extract real data points regarding outcomes.
That being said, Bromberg does concede that there are some clear losers that came out of last year’s ICO frenzy, which saw many scams and vaporware projects raise tens of millions of dollars. Ultimately, Bromberg sees the ICO market returning to its 2016 status, where fewer projects raise more money as investors begin to better understand the industry.
Bromberg revealed that CoinList approaches each token sale as a fully compliant securities sale in anticipation of future regulations. While he noted that some of these “security tokens” may revert away from needing to be classified as a security in the future, the company isn’t willing to take any risks.
Bromberg notes that CoinList has worked with 5 ICOs since launching, receiving more than 2,400 inbound requests. The company takes a venture capital-like approach to assessing ICOs, including a review of everything from teams and technology to legal structures and token economics.
Given that the field is so young, Bromberg believes that new methods of assessing blockchain projects and ICOs will emerge, but for now, the firm is hiring generalist.
CoinList recently closed a $9.2 million Series A investment when it spun-off of parent company AngelList.
Note: Bromberg was incorrectly described as CoinList’s CEO and the article has been edited to reflect his proper title within the company.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.