Recently, Ryan Zurrer, founder of Dialectic Group, expressed his views on the upcoming era of Initial Coin Offerings (ICOs), predicting that next year will usher in a new phase known as “ICO 2.0.” What will ICO 2.0 look like?
(Background: The Solana ICO frenzy: Meme coin Milady Wif Hat, Whales Market… raised $50 million in one night)
(Background Supplement: OpenAI reveals the original 2018 plan for “ICO token issuance!” but it was vetoed by Musk for a reason)
In 2017, led by Ethereum, ICOs (Initial Coin Offerings) surged explosively, becoming a hot spot in the cryptocurrency market and attracting billions of dollars in global investment. The low entry barriers and rapid fundraising features led to the emergence of countless blockchain projects. However, as the market overheated, regulatory gaps widened, and fraud cases proliferated, investor confidence waned. The ICO bubble ultimately burst in early 2018, with nearly 90% of projects failing. Nevertheless, due to the limitless innovation and opportunities, that period is often nostalgically referred to by older members of the crypto community as the “most cherished era.”
Further Reading: Where Have the Tokens Gone in the Past Decade? From Failed ICOs to Market Apathy
Will ICO 2.0 Make a Comeback in 2025?
Recently, Ryan Zurrer from Dialectic Group shared his insights on his X platform and Coindesk:
He believes that with the improvement of global regulatory policies and the maturation of the market, ICOs (Initial Coin Offerings) will enter a new era, referred to as “ICO 2.0.” This time, it will significantly differ from the past ICO model, benefiting from three core characteristics:
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, which will help mitigate market risks. At the same time, he emphasizes that the accumulation of token value will become the core reason for investment, fundamentally altering the previously vague compensation mechanisms and establishing a better balance between regulation and the market.
Shift in Market Models
He also mentioned that medium-sized enterprises are expected to rejuvenate through adopting decentralized models, particularly in the media sector. By incentivizing citizen journalists through token economics, not only can the professional level be enhanced, but business models can also be improved, turning user participation into real value. This model will open 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 engagement, and the transparency of decentralized ledgers have allowed the market’s self-regulatory capabilities to surpass those of government regulatory bodies. Zurrer emphasizes that the open and transparent decentralized ledger brings higher efficiency to the industry, which is a crucial foundation for the steady development of ICO 2.0.
Most importantly, the community has demonstrated extraordinary capabilities to publicly expose absurdities and eliminate bad actors, far surpassing government regulation. The transparency of open decentralized ledgers serves as an especially effective disinfectant.
ICO 2.0 Outlook: Traditional Enterprises Issuing Tokens and Mergers Among Crypto Companies
Ryan Zurrer first predicts that decentralized capital formation is entering a new peak, expecting the scale of ICO 2.0 to far exceed the $20 billion allocated during ICO 1.0 from 2017 to 2018. He forecasts that in the coming years, fields such as DeFi, NFTs, and RWAs will attract hundreds of billions of dollars in capital, driving the continuous upgrading of the cryptocurrency 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 (L2) solutions. He anticipates that as the market matures, there will be billions of dollars in merger cases reshaping the industry ecosystem.
Whether traditional companies are seriously engaging with cryptocurrency and reclaiming ground, such as the Stripe and Bridge deal, or Ethereum Layer 2 solutions come together, recognizing that only a few will survive and become significant, we will witness billions of dollars in merger activities in the coming years.
Additionally, he noted that mid-market Web2 and traditional companies are gradually leveraging token incentive mechanisms for transformation. For instance, enterprises in sectors like 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.
It is worth mentioning that Zurrer is optimistic about Regenerative Financing (ReFi), which aims to bridge capitalism with charitable missions, achieving a balance between 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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