Recently, Ryan Zurrer, founder of Dialectic Group, expressed his views, suggesting that the upcoming year will usher in a new era for ICOs (Initial Coin Offerings), termed “ICO 2.0.” What will ICO 2.0 look like?
(Background: The Solana ICO frenzy: the meme coin Milady Wif Hat, Whales Market… raised 50 million dollars in one night)
(Additional context: OpenAI’s shocking revelation of the original plan for “ICO token issuance” in 2018, which was vetoed by Musk for a specific reason)
In 2017, led by Ethereum, ICOs exploded onto the scene, becoming a hot pursuit in the cryptocurrency market, attracting billions of dollars in global investments. The low barriers to entry and rapid fundraising features enabled countless blockchain projects to emerge quickly. However, as the market overheated, regulatory gaps widened, and fraudulent cases became rampant, investor confidence wavered, leading to the bursting of the ICO bubble in early 2018, with nearly 90% of projects failing to deliver. Nevertheless, due to the limitless innovation and opportunities, that period is often nostalgically referred to as the “most memorable era” by the older generation in the crypto community.
Further reading: Where have the tokens that disappeared over the past decade gone? From failed ICOs to a lack of market interest
Will ICO 2.0 make a comeback in 2025?
Recently, Ryan Zurrer shared his perspective on his X platform and Coindesk:
He believes that with the improvement of global regulatory policies and the maturation of the market, ICOs will enter a new era, referred to as “ICO 2.0.” This time, it will be significantly different from the past ICO model and will benefit from three core features:
Updated Regulatory Stance
Ryan Zurrer believes that future regulatory policies will be clearer, focusing on ensuring market transparency and stability. For example, KYC (Know Your Customer) and AML (Anti-Money Laundering) policies will concentrate on the inflow and outflow of funds, such as exchanges and cross-layer bridging tools. These measures will help reduce market risk. He also emphasizes that the accumulation of token value will become the core reason for investment, fundamentally changing the previously vague compensation mechanisms and establishing a better balance between regulation and the market.
Market Model Transformation
He also mentioned that medium-sized enterprises are expected to gain new life by adopting decentralized models, particularly in the media sector. By incentivizing citizen journalists through token economics, not only can professional standards be enhanced, but business models can also be improved, turning user participation into real value. This model will open up a new development path for traditional industries.
Advancements in Technology and Community
Compared to the crude operations of early ICOs in 2017, the current cryptocurrency ecosystem has achieved a qualitative leap. User-friendly applications, active community participation, and the transparency of decentralized ledgers have enabled the market’s self-regulation capabilities to surpass those of government regulatory agencies. Zurrer emphasizes that the publicly transparent decentralized ledger brings greater efficiency to the industry, which is a crucial cornerstone for the steady development of ICO 2.0.
Most importantly, the community has demonstrated extraordinary capabilities in publicly exposing absurdities and eliminating bad actors, far surpassing government regulation. The transparency of an open decentralized ledger serves as a particularly effective disinfectant.
The Shape of ICO 2.0: Traditional Enterprises Issuing Tokens and Mergers among Various Crypto Companies
Ryan Zurrer first predicts that decentralized capital formation is entering a new peak, and he expects the scale of ICO 2.0 to far exceed the $20 billion allocated during the ICO 1.0 period from 2017 to 2018. He anticipates that in the coming years, fields such as DeFi, NFTs, and RWAs will attract hundreds of billions of dollars in capital, driving continuous upgrades in the crypto industry.
Zurrer emphasizes that merger and acquisition activities will become an important part of future on-chain capital formation, or the integration of various Ethereum Layer 2 solutions. He predicts that as the market matures, there will be billions of dollars in merger cases that will reshape the industry ecosystem.
Whether traditional enterprises are taking crypto seriously and reclaiming lost ground, as seen in the transaction between Stripe and Bridge, or whether Ethereum Layer 2 solutions are coming together, recognizing that only a few can survive and become significant, we will witness billions of dollars in merger activities in the coming years.
Additionally, he mentioned that mid-market Web2 and traditional companies are gradually utilizing token incentive mechanisms for transformation. For instance, companies in sectors such as energy, media, and art are improving their value chains through decentralized models, rapidly attracting customers and reducing operational costs, showcasing the immense potential of token economics.
Notably, Zurrer is optimistic about Regenerative Financing (ReFi), which combines capitalism with charitable missions, creating a bridge for achieving reasonable returns and social goals. He also mentioned that ICO 2.0 will create more balanced participation opportunities for retail and institutional investors through reputation-based selection methods or specific qualification verifications, promoting more transparent and equitable financing practices.
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