While for exotic assets we primarily view the market that IdeaFeX creates as substitutes for existing alternatives, for product futures we see it as a complement to crowdfunding, ICO, and supply chain investment.
In 2018, total crowdfunding transaction volume reached over $9.3 billion with 45.6% year-on-year growth . This number is expected to reach over $25 billion by 2022. On top of traditional crowdfunding, ICOs amassed over $20.3 billion in 2018 . Some startups, due to uncertainties in their future pricing and limited target market size, may be more suitable for crowdfunding. Other startups may choose to adopt a special “currency” for their service. Nevertheless, for most startups, product futures offer a superior solution: Unlike crowdfunding, investors need not be end consumers, and the secondary market supplies liquidity for flexible entry and exit. Unlike ICOs, where tokens are considered “money” and are highly volatile, with product futures tokens represent the products or services that the startup will offer. Relative certainties and prospects of growth in their value makes them a more viable investment. We believe it is reasonable to expect this source to grow in ten years to at least the size of current crowdfunding and ICO combined, at over $30 billion per year.
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This is the exert of an article originally published on our Medium channel: https://medium.com/@IdeaFeX/ideafex-deep-dive-11-market-sizing-b-ecd73685261b.
#IdeaFeX is the #marketplace for the #financing and #investment of #tokenized real-world assets, in particular #ExoticAssets and #ProductFutures. This Deep Dive series is developed from our Token White Paper.