ICO Watch: Open Platform’s Not-So “Open” ICO

After quickly hitting their $30 million hardcap during the private sale, Open Platform has taken their public crowdsale off the table. Are the days of public sales drawing to a close?

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As dedicated followers and prospective punters prepared for another “gas war,” all hopes of a crowdsale were quickly dashed, with Open Platform announcing they were revoking their crowdsale after collecting the grand sum of $30,000,000 from private investors alone.The Open Platform ICO had all the hallmark signs of spectacular success. Sporting a burgeoning Telegram group in the tens of thousands, widespread acclaim across scores of ICO reviews, and naturally the obligatory prophecies of titanic token appreciation, the stars seemed to be in line for another home run; perhaps one of the year’s most highly anticipated ICOs.

Evidently, in anticipation of a PR backlash, the team went on to satisfy its deflated followers, assuring them that no crowdsale meant no possibility of scammed supporters, and more “time which will be better employed building out our project and signing up more partners ready to utilize our infrastructure.” Summing up with the promise of airdropped tokens only for long-term followers, Open Platform carefully defused the situation and did their best to avoid any kickback.

All questions of disappointment aside, the Open Platform saga will serve as paramount evidence that ICOs are becoming increasing exclusive, alienating anyone outside the highly coveted realms of the “big money” (a.k.a. the ‘whales’).

There is a fear that has plagued lone investors and amateur supporters for months – the ever-increasing exacerbation seen in the form of desperate pleas for re-opened whitelists, airdrops, bounty programs, or any taste of (tokenized) inclusion.

The stampede mentality amongst ICO investors is the symptom of too many vying for too little. Open Platform’s over-subscription will likely be the first of many this year and highlights the inevitable prospect that ICOs will be carefully selective in their sources of investment.

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ICO or IPO?

Traditionally, the dynamics of ICOs have been in-line within the founding principles of the blockchain movement; neglecting the classical ‘closed door’ venture capital format of IPOs, for a more open, crowdfund-style liberation of capital flows, where participation is open to all.

The days of public crowd sales may be short-lived, limited to a brief window of enthusiastic, the unbound contribution from supporters of all shapes, sizes, and bank balances.

As public sales become increasingly privatized, upcoming blockchain projects will demand more from their investors than just capital, or as the Open Platform team noted:

Further, given the incredibly large number of requests for allocation, we are foregoing our crowdsale in order to focus on long-term partners that are locked in to providing real long term growth to our project and the developers we serve.

The Future of ICOs?

The term “strategic partner” is to become the golden ticket, with some projects requesting not only significant sums of capital from investors but crucially a level of expertise that will propagate the success of the project. Be it in the form of legal consultancy, PR, or community building; individuals that can offer practical value to an ICO will be looked upon with much favor.

While average investors will grieve at the prospect of exclusion, there is hope to be found when looking at the bigger picture.

As projects gain access to expert help during their infancy, they will inevitably progress exponentially faster, in turn cementing their legitimacy, success and the mass adoption of blockchain.

We may be experiencing the last hurrah of truly open crowdfunds, but perhaps we are also farewelling the days of seemingly “successful” ICOs that only offer unmet roadmaps, plummeting prices, and crestfallen investors.

For more information on the Open Platform, including project information, social media links and founders, visit our Open Platform ICO profile or watch the video below.

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