CoinList Cofounder Andy Bromberg and Ramon Recuero | Summary and Q&A

TL;DR

The token sale model is best suited for funding protocols, projects that benefit from early user involvement, and asset-backed tokens, while index funds may become popular for investing in the crypto space.

Key Insights

• 🏢 Most projects are not a good fit for token sales, and only a few are of high quality and have valid reasons for conducting an ICO.
• 📜 Raising money for protocols that need to be distributed and projects with early user stakeholders are two valid use cases for token sales.
• 💼 Asset-backed tokens are a separate category and have potential in the ICO market.
• ⚖️ The SEC chairman has stated that most ICO tokens are securities, and regulations need to be followed to determine whether or not a token is a security.
• 🔒 Compliance and security are important factors in evaluating token sales, and companies like CoinList provide full compliance services.
• 💰 Liquidity crunch may be a concern for post-ICO companies, but it depends on the project and how it is managed.
• 🌐 There will be competition among protocols, but there may be a consolidation in the long run with interoperability between protocols.
• ♂️ Onboarding users to protocols should focus on making the process easy and understandable, with intuitive user interfaces.
• 💡 Implementing an index fund strategy may appeal to retail investors in the crypto space, but it may not be the default way of investing for the majority.
• 📚 Research and due diligence are crucial for employees joining crypto projects, considering factors like the team, product, technology, and token economics.
• 💡 CoinList's focus is on providing services and tools for companies building protocols in the crypto space, rather than starting a specific project itself.

Transcript

let's just start Andy with a quick intro of who you are and what you're working on sure my name is Andy Bromberg I've run coinless coin Lass's platform where the best digital asset companies manage their token sales and we're also where investors find high-quality deals in the space so we're working on helping with things like compliance something ... Read More

Questions & Answers

Q: What are the three main categories of projects suitable for token sales?

The three main categories suitable for token sales include protocols that require distributed funding, projects in which early users benefit from being stakeholders, and asset-backed tokens that tokenize existing assets.

Q: How can companies decide when a token transitions from being a security to a non-security?

The determination of whether a token transitions from being a security to a non-security depends on factors such as legal analysis, compliance with the Howey test, the token's rights and utility within the network, and advice from legal counsel.

Q: What are the challenges in onboarding non-technical users to a protocol?

Onboarding non-technical users to a protocol can be challenging due to the technical complexity of using wallets and blockchain interfaces. However, projects should focus on making the process as intuitive and user-friendly as possible through clear instructions, simplified interfaces, and reducing the reliance on technical know-how.

Q: Do you think there will be a consolidation of dominant protocols in the future?

While there may be one dominant protocol within a specific category at any given time, the crypto market is driven by competition and innovation, leading to constant evolution and the emergence of new protocols. However, interoperability between protocols through networks and platforms may lead to consolidation and collaboration among different protocols.

Q: How can people evaluate token sales as potential employees?

Evaluating token sales as potential employees involves considering the team's experience and track record, the project's technical details, token economics, the history of the team, and seeking external advice from experts and investors in the industry.

Summary & Key Takeaways

• Most projects are not suitable for token sales, but protocols, projects with early user stakeholder incentives, and asset-backed tokens are good fits.

• Evaluating token sales involves considering the team's experience, technical details, legal and economic structures, and the potential for value accrual to the token.

• The SEC chairman's remark implies that most tokens sold during ICOs are initially considered securities, but their status may change in the future based on legal analysis.

• A liquidity crunch for post-ICO companies may arise, but the incentive structure and the potential for network effects can influence the value and growth of these companies.

• Onboarding users to a protocol should prioritize making the process easy and user-friendly, even for non-technical users.

• The future of crypto will see a blend of specialized protocols and interoperability, with some protocols becoming dominant in their categories.

• Investing in crypto requires due diligence, a balanced asset allocation strategy, and an understanding of the project's value proposition and team.

• Companies building protocols should focus on creating products that users can easily understand and use, and index funds may become popular among retail investors.

• Joining a crypto project involves evaluating the team's history, the technical and token economics, and seeking advice from experts in the field.

• The future of the crypto industry is attracting diverse talent, building user-friendly tools and services, and leveraging the brainpower of professionals coming into the space.