From 21 to 23 November in one of the pavilions ENEA held a major conference Russian Internet Week, in which the participants discussed the most important issues regarding the development of the Internet and its resources. Special attention was paid to the blockchain and bitcoin, so in the fields of Internet week, a conference was organized Crypto RIW Event. Specialists crypto industry talk about their technologies and, of course, the pain holders of digital coins.
The conference featured speakers from analyst firms and presented their reports on the previous period. In particular, Anastasia Denisova from ICORating said that the projects have reduced fees. The period of decline in the third quarter amounted to more than 70%. Moreover, as emphasized Denisov, the market falls not on the number of projects and their quality, the average bill-a request of the project now is $1−$5 billion.
The third quarter in a row among the ideas are popular projects that want to build dApps on Ethereum, — 86.13% of the market offers. 76.15% of the projects are in industry with only idea without any development and specialists. «You can see the disappointment of the market for the instrument. Well-known companies began to come to Russia, to organize meetings, raise funds here, because in other countries people do not believe in the blockchain. Besides, now the trend has gone into the positioning of both the STO (Security token offerings. — DeCenter), because the ICO is already not credible,» — said Denisov.
About disappointment in the popular fundraiser told Ignat bobrovych of Twognation. Their team refused to hold the ICO, as it considered this method is unprofitable and excessively risky. «When was the smell of money, people wanted 10x. Projects somehow thought (and some think still is) that the user wants to understand the complex system of tokens. But it is not so, especially now that these coins are worse than candy wrappers, they are not wanted».
On the screen bobrovych presented a caricature of the typical exaggerated the developer, which reflects on the uniqueness and thinks that his startup is the most effective, and its internal coin will change the industry. «How often thinking has created projects about the tokens: «They are not wrappers. They utility. Or security. Give two, to be sure! Now we are not going to guarantee a passive income, then the token will be utility. Although it is possible to do security — it is simply (actually not). So let it be 2 token — security and utility. Hurrah!” Agree that it is nonsense?».
In addition, as noted bobrovych, user acquisition much more expensive. According to estimates Twognation, more than 75% of investors who are interested in the product and ready to sign up, drop out in the phase of registration. «People don’t know how to use wallets to store Private Kaew and take full responsibility for his loss and also to understand how the Metamask, MEW and so on. Often user engagement becomes 4 times more expensive than assumed. The cost of the ICO estimated at an average of about 10% of the amount you intend to collect. This amount you need to invest in advance and without warranty of any kind,» says bobrovych.
Another existing problem is the opening of Bank accounts on the blockchain and check the ICO said Julia Demski of SBSB. The representative of the company assures that the project can «like jar» in the event that the company and the office will be located in the country of registration and have a full set of technical documentation, have a clear diagram of the transaction with the prescribed procedures of KYC and AML.
Also, if the organizers of the project have experience of Fiat in the financial sector, will not be superfluous to talk about yourself, prepare a cover letter to a banker explaining regarding the submitted documents and the substance of the project, I’m sure Demskie.
About the regulation of the cryptocurrency industry and fixation of concepts in the documents have spoken at the panel discussion «International law of the use of the blockchain». Lawyer Maria Agranovskaya believes that the terms of the SEC does not distinguish between security and utility-tokens. «The SEC is not ready to accept the token as utility, so force all to comply with the rules for securities. And, for example, in Switzerland or Singapore the division is. Everyone is waiting for the official splits. Possible until you will be a major billion-dollar litigation, the jurisdiction will not pay attention to the cryptocurrency. Terms of managed funds is the message of jurisdiction. Classic investors are unable to operate without regulation. The new regulation arises to attract new money in small countries. Serious States do not consider it necessary to regulate the cryptocurrency».
On the same panel discussion, the lawyer Alla Barysheva of Legal Norland said that the banks are not happy to see the project tokens. «Well, when a small country — where every trial is examined individually, the legislation is trying to help with regulation. However, it is expensive, the project should be ready to spend a lot of money on lawyers. In addition, regulators insist that investors were very professional.»
Michael chobanian of the Ukrainian stock exchange KUNA.io shared his experience of creating legal rules. «Approaches differ from country to country. In my opinion, the main thing is to focus on the person, not the company. The average person can for the cryptocurrency forced to pay the tax. Need to lower this interest rate. In addition, people do not want to pay VAT of 18%. Operations with bitcoin should be taxed. I also believe that plain old industry should not use a young virgin and the crypto-industry. No need to create rules for the major players. Otherwise, the crypt will become in the same area, which is now.»
«Bitcoin will cost more because there is a demand. Perhaps we made a mistake that treated bitcoin as assets» — said Anatoly Radchenko from United Traders. The expert is sure that it makes no sense to predict what cannot be predicted, and wait for this is also not necessary. Besides, there is no background on which to draw in assessing the cryptocurrency.
«There are no reliable data. At each exchange the cost will be different. For example, false news form the people’s attitude to the value of the asset, but not really affect price, because no one knows the real price. Rating agencies and their listings for sale. These companies also do not understand,» — said Radchenko.
Investor Lenar Rakhmanov from the Inception of the Fund told about how to survive and make money in an unpredictable stock market. Now with a sharp drop in the value of assets HODL strategy is not working. «Nothing will grow, don’t pray».
However, traders who manipulate their assets, also faces problems. «The constant knocking of the pillars; it is unclear when to enter the market; the classic indicators of assessment often do not work in a falling market and especially in the flat; the few who can earn; dangerous entrance to high-risk projects; unable to determine the direction of the market; no understanding of how people think whales» — lists the difficulties of trading Rakhmanov.
To survive in the market, it is necessary to apply risk management. «Even an ordinary table can help to reduce losses: shall describe the amount of volume on different targets and do not spend more than you planned. It is also desirable to analyze future reports. Because they allow you to see the seamy side. Use margin trade. It allows you to use leverage for trading on the stock exchange,» Rakhmanov said, adding that experts of the Fund has determined its own strategy. «Reversal strategy: rebalancing + averaging + diversification».
On the development of exchanges and platforms for trading said Konstantin Fin Xena Exchange. The specialist explained that earlier, when the industry was in its infancy, exchanges were built hastily and now do not meet the requirements of the market. Some sites did not have stop orders and other tools necessary for the trade. At the moment on the market lacks good intelligence due to the fact that the teams did not understand anything in the industry. «So far none of the users knows how to construct a cold storage exchange. Crypto-assets are beginning to be added to the investment model. There is a signal to the development of interest in the market from large investors. The time for this,» says Fin.
Modern exchange has to operate with high asset class. However, this raises a big problem, which is associated with storage security. Often no one knows there was a break or not. Many sites hold assets in the cloud, and it is wrong.
Also specialist crypto currency exchange gave advice on the selection of quality sites for trading. «When choosing a platform it is important to pay attention to the specification of contracts, how is their price, which licenses are subject to what country are regulated. After all the times without regulation come to an end. It is important to see what tools for analysis and trading are available, as governed by the listing process. Who built the exchange, if it has experts from the financial industry is also a very important criteria for the selection of the exchange,» says Fin.
In the information field around blockchain technology slept HYIP, and it now remains only those who are really interested in a distributed registry. This was during his speech, said Ruslan Yusufov from Mindsmith.io. Now blockchain-motivation is among the strategic priorities. Business is ready to invest. The only missing information for implementation.
Yusufov gave details of a survey where respondents were 1053 companies from USA, Canada, Mexico, UK, Germany, France, and China. 74% of those polled believe the blockchain and see attractive opportunities for its implementation in your business. 43% of companies are afraid to be late with the introduction of the blockchain. 68% believe that they will lose competitive advantage if implemented in the blockchain. 69% plan to implement with the replacement of existing systems (CRM, ERP, accounting, warehouse and so on). 39% are willing to invest $5 million in the blockchain in the next year.
About professional personnel in the field of blockchain spoke at a panel discussion by the specialists of hr departments and executives. Oleg Lyubimov from SONM said that those people who are willing to go in the draft, I would not like to see in companies. «The blockchain the last couple of years was on the hype, people smell the money and put yourself in the summary line about technology. Those who want to see intelligent and advanced, but they do not risk their main job and are just afraid to come in the industry.»
Dmitry Marinichev from Russian Mining Center agreed with Lyubimov and added that it is harder to find specialists who would be versed in the gland. «This is Russia’s problem. Held the developers can actually make money on their own, they are difficult to buy. However, often there are people who want to do well. With them we work».
Daria Platova from ICObench said that now the cryptocurrency market has decreased interest, but despite this there is a need for technology. «Teams need advanced industry experts, and where to get them, if the industry is very young? The blockchain quickly recognized the lie — kamery will not be able to lie about their abilities. There is a problem in trust. We can’t trust everything that is written in the summary. The candidate needs to be flexible.»
Mykola Velychko from HeadHunter assured that the employer needs to establish itself as a reliable company that has big goals. «The only way to get top experts, they have to believe you. If you want professional, then let’s have more transparency.»
Gleb Shirshov of 2Miners told about the impossibility to find a specialist masternode. «Simply unrealistic. So often we have to take what there is, and then to grow within the project. Indeed, many programmers do not understand the blockchain». In the end, all came to the conclusion that I need to adapt professionals for the blockchain industry.