Note: ICONOMI ICO is ongoing
ICONOMI is generating a lot of buzz, but sometimes the true value proposition gets hidden under all the spam that you see on Twitter and Bitcointalk (to their credit, the ICONOMI team is really serious about not rewarding spam, and I commend them for that). So here’s the value proposition of ICONOMI for investors. Please remember that any ICO investment is risky, and you absolutely should not invest more than you can afford to lose.
Real Business Proposition
ICONOMI isn’t yet another altcoin. It has a real business behind it. Real businesses make profits, have earnings and revenues. Altcoins don’t. Therefore ICONOMI, even though it is a token on a blockchain, is much more than just an altcoin.
Therefore, investing in ICONOMI is very different from investing in all these other ICOs that are going on. You will own a piece of a business that generates profits.
There are no cryptocurrencies today that give regular dividends to holders. The first time this was really put forward was with Augur. However, Augur isn’t launched yet. ICONOMI is doing the same with its token – giving monthly dividends to investors. This can be quite variable I know but it is a pretty good value proposition.
If you make a stock market analogy, you get both dividends and capital appreciation (increase in share price). Over the long-term, dividends can be a very important component of returns. In fact, for stocks, they have been the dominant source of returns over >50 year holding period.
Disrupting a Stodgy, Old Industry
ICONOMI is in the fund management business. That’s a multi-trillion dollar industry right there. It is also old and stodgy and hasn’t seen innovation in decades. It is ripe for disruption by a startup. The existing players sit on a gold-mine, and investors are forced to use the existing systems because there is no competition.
ICONOMI has come out of the blue, and is sure to kick the incumbents into action. However, it will likely be too late for them by the time they realize its potential. Fund management is huge. Even if ICONOMI is able to obtain a very small piece of this pie, like 0.01%, it will end up being very large, in the order of billions of dollars. That’s a huge opportunity right there.
This is a less-often discussed aspect of ICONOMI, but is a powerful tailwind going forward. In addition to the 2 funds – INDEX and PERFORMANCE, ICONOMI will also launch a fund management platform. This will allow other crypto investors and traders to offer their own funds to their clients. It is like a platform that allows anyone, even with $0 in their bank account, to start a hedge fund. Let that sink in for a moment.
We have seen how tech companies that build platform economies can be massively successful. Uber is a $60 billion company. Airbnb is a $25 billion company. Even if ICONOMI becomes a $1 billion company, it will be a huge part of the crypto ecosystem.
So there you have it. These are some of the value propositions for ICONOMI. What other killer features did I miss? Let me know in the comments.
Bounty claim code: ICO3T68g7bnfDVOnqbjlk7ZqdXYnP7fPYNHICONOMI
Photo Credit: Chicago Man