This article is written by one of our contributor Stefan Perlebach.
We spend the last 1,5 years within the crypto world.
Let’s have a look how this turned out and which Learnings we made by showing you 3 projects we have worked on — starting with Utility Tokens to our newest endeavor focussing on Security Tokens.
1. ICO Review
End of 2017 we got hooked by the crypto hype like so many others. This crazy amount of different ICOs out there let us came up with our first product — TrustedDapps. The idea: We need a guide separating the good (ICOs) from the bad.
We called it “The Ultimate Guide to review ICOs”, focussing on the team, product and technology of the projects behind the ICOs.
We got some attention for that, however, it is not easy assessing a project from publicly available information only and after a while it gets boring studying Whitepaper etc.
What is even harder: To foresee if the value proposition of a project and its token economics really make sense and will work out as promised. As you might know 90% of all startups are not successful. Add to this the ICO/Blockchain-hype and your probably end up with 99% of failing ventures.
2. Product Test
That’s why we decided rather testing products already out there than evaluating what’s upcoming. We looked for those Utility Tokens (e.g. Golem) which are already usable, tried them out and wrote about our user-experience.
The result: For people who are not familiar with crypto and just want to use a service or product that works, for example a decentralized storage space or computational power to render a file, it is really hard. Especially the user friendliness is lacking but also the price for the services compared to centralized services was not convincing at all.
3. Security Tokens
If not for utility, what else is blockchain good for?
As we talked to many experts within the industry, this answer became more and more obvious: Store of Value
That’s how we started to deep dive into the concept of Security Tokens and their benefits. Security Tokens as a means to register the ownership to an underlying asset with value (e.g stocks, bonds, real-estate, commodities, a piece of art etc.) sounds until today like a promising use case of blockchain to us.
The more we studied about it, the more we understood the advantages (especially for investors) that Security Tokens can deliver. We wrote our first pieces about the Advantages of Security Tokens and The Differences between Utility and Security Token and while doing so that started our next project — STOcheck .com — which is listing all Security Token Offerings (STOs) and provides Education & News around this topic.
Until today we believe that Security Tokens have the potential to disrupt the traditional financial industry and become very popular with the next years.