Recently we spoke to Ruslan Gavrilyuk, co-founder and CEO of the crypto fund TAAS, about the current cryptocurrency market and new developments. Ruslan also gave us his insights as to
- why funds fail,
- the reasons security tokens will change the fundraising landscape, and
- how to spot a scam ICO.
What’s happening in the current crypto market
When speaking about the current crypto market, Ruslan mentioned that it is currently experiencing drastic changes due to emerging new regulations. However, the most important changes that have been seen this year, which will definitely expand by next year, are tokenized securities.
According to the crypto expert, the move to security tokens is inevitable in fundraising. Ruslan points out that there are lots of useless utility tokens that can be replaced by other cryptos or even Fiat currency. The real game changer for fundraising are security tokens, which will be take off once regulations and infrastructures like depository, share registry and custodian solutions are in place.
“Utility tokens are often useless.”
Ruslan asserted that crypto funds fail due to the erroneous assumption that they are easy to manage and the regulatory landscape remains in a state of flux. Add this to the lack of hedging instruments, trading instruments, and reliable sources of information and you have a terrain that is difficult to navigate.
Tips for spotting ICO scams
Ruslan also gave tips for spotting ICO scams and what key aspects one must look into before investing. According to the expert, if the project is great then investors will come.
“Good ICOs don’t need to approach investors. Investors are hustling to get to them.”
To identify the good ones from the bad, one should take into consideration all aspects of the offering, including whether there is a real business problem and if they have immediate solutions. The token model, and if it can be replaced by any cryptocurrency are also important considerations, and finally jurisdiction and financial models.
What to look for when investing
As for what TAAS looks for when investing? The expert explains that TAAS gives most consideration to projects that already have existing products that have been delivered, proving their potential. That way, the fundraising campaign will be shorter, investors will get liquidity in the market much faster, meaning they can invest over and over again.
What matters most is the protection of the investment and for that, regulations must be put in place.
“Crypto markets operated early like football played at the backyard… now we are moving to the first league.”
Bitcoin price predictions
Finally, Ruslan shared his Bitcoin price predictions, claiming that prices could reach about $25k or more next year.