By Allan Klepfisz, Lance Ford and Richard Lee, Co-Founders FENIX
“Talk to me, so you can see
Oh, what’s going on”
– Marvin Gaye, What’s Going On
It’s been too long between updates again, and for that we apologise… However, lack of public posting should not be assumed to mean that (i) we haven’t been flat out busy working on the FENIX product, distribution and the entire process and (ii) that we haven’t made massive progress on a number of fronts…
In the past year, the ICO market has changed dramatically. Thankfully. Previously, a barely passable whitepaper and some semi-clever marketing was sufficient to raise an unjustified quantum of funds.
Nowadays, a selection of recent headlines on the overall ICO / crypto markets, tells a very different story to that of a year ago:
- “From $2.9 Billion in a Month to Hundreds Dead: Trends of the Rollercoaster ICO Market in 18 Months” – Cointelegraph.com, 7 July 2018
- “The ICO Market has hit the brakes” – bitcoin.com News, 9 August 2018
- “ICO investments nose dive to 17-month low as crypto markets see slowdown and ICO frauds go up” – coingape.com, 9 October 2018
And the IPO markets, are not faring much better:
- “More IPOs pulled in Europe as markets brace for turbulence – Almost twice as many deals have been pulled in Europe this year than in the whole of 2017” – Financial News London, 12 October 2018
- “The third quarter has lived up to expectations as the quietest period of the year with the global IPO market feeling the full force of geopolitical tensions, trade issues between the US, EU and China and the looming exit of the UK from the European Union.” – Global IPO trends: Q3 2018, Ernst & Young
Market conditions are difficult – people who last year were making multiples on investments are finding that they are losing money by participating in new projects. As a result, interested parties are rightly demanding a higher degree of diligence, transparency and substance when they consider new projects in which they may participate.
None of this is a surprise to us, and you will recall that we were clear when we first introduced FENIX into the public domain as to the standards that we required of ourselves before we launched any formal ICO.
We have always considered an ICO to be a stage in the process of our delivering the successful rollout of FENIX, and certainly not the end game. While we continue to build our ICO case in difficult markets, our principal focus has been on delivering a quality product with a comprehensive utility case and reasons for mass adoption from all key stakeholders.
With all of these in mind, we have spent recent weeks working tirelessly to develop the FENIX business case as we approach launch of the FENIX ecosystem and to substantially exceed (in both comprehensiveness and quality) the new market dictates of ICOs. And what are people looking for when they consider new projects in which to participate? We believe that
people require for any new project to have, as a minimum, at least some of the following:
As indicated, the market has now demonstrated that it requires at least some, if not all, of these elements to be in place prior to launch of an ICO to be taken seriously and have a reasonable chance of success. Our aim, which has been consistent since the start of this process has been to deliver a truly standout business & ICO that incorporates ALL of the above – and frankly MUCH more. As you can see, we are well on our way.
Our timing has changed – not because we haven’t accomplished what we needed to in a timely fashion, but rather because we decided to hold ourselves to an exceedingly high standard and not request public funds until everything was buttoned down.
There is no point racing towards an ICO if it is inevitably going to go the way of most:
- either be a failure in terms of raising the requisite funds OR
- be a failure in at least maintaining (if not escalating) a subsequent coin price OR
Most recent ICOs have frankly been a failure on BOTH fronts.
There is still plenty of money around for high quality projects. Our aim is to be outstanding among the best. We think in some respects we are already there – we wish to be in all respects and that is what we have been working hard to ensure in recent weeks.
We will follow this note with a series of follow up notes in the coming days providing you with some more colour as to precisely what we have been doing, and the reasons why we have done it. And we will post an update on the FENIX product – how it has evolved and why we think it is now a comprehensive solution for everything that both artists and fans need.
It’s a lot to digest, but then again, FENIX is a big project – we are ambitious in what we wish to achieve and understand that, even if it takes a little longer, it will be worth it – for artists, for fans and for everyone else involved in the music industry today.