The Future of Cryptotokens

40 Pages Posted: 12 Oct 2018 Last revised: 9 May 2019

Date Written: May 2, 2019


In this article, we study how cryptotoken issuance, also referred to as initial coin offerings (ICOs) and security token offerings (STOs), may disrupt funding markets such as venture capital, crowdfunding, and private equity. We discuss the necessary infrastructure to support this new asset class. We analyze the market evolution in terms of volatility, global reach, news events, and types of industries that are issuing or considering to issue tokens. We discuss some specific token offerings to highlight lessons learned. We summarize the regulatory landscape and challenges going forward. This market crashed in terms of market capitalization at the end of 2018. However, this new asset class along with the underlying technology hold great promise to disrupt various types of intermediaries if adequate financial and regulatory infrastructures are developed.

Keywords: Security Token Offerings, Initial Coin Offering, Cryptoassets, Financial Innovation, Venture Capital, Crowdfunding

JEL Classification: G23, G21, E28

Suggested Citation

Biasi, Joey and Chakravorti, Sujit, The Future of Cryptotokens (May 2, 2019). Available at SSRN: or

Joey Biasi

Independent ( email )

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