Like a lot of companies – we are in the midst of a token offering and we have a website with a link to our white paper and a video.  We were talking with some blockchain experts recently and they gave us some great advice that we are working to incorporate into the white paper (so wait a couple of days before you click on that link if you want the latest).

They told us that what we are doing in the identity space fills a huge hole, but that the way we are positioning it will have smart blockchain people scratching their heads because the use cases are not as clear as they need to be – in blockchain terms.

They said that one of the problems with these token offerings / ICOs is that people don’t realize that that successful ICOs use tokens as a reward  – an incentive for miners to earn them so that they can get cryptocurrency.

The bigger point is that they see all of these ICOs for things that don’t solve an immediate blockchain problem.  They rattled off three things that are really hard on blockchain in financial services today – saying THAT’s where the money is:

  1. Creating a bank account
  2. Selling cryptocurrency for USD or other traditional currencies
  3. Trading in securities

Those are things people struggle all day every day with in the blockchain world  – and if there is a token out there that advances any of those – that will be a very successful offering.  They said Civic is an interesting case where the model they presented is incredibly complex and in its current form it would not get used – but because people get the vision that it would enable people to open bank accounts – that’s one of the reasons that offering was successful.  They happen to think that the AuthenticID token offering can solve all three of these issues – but that the use/incentive model still needs work to drive adoption.

So the question is – why wouldn’t there be something like the Netflix Prize or the Zillow Zestimate challenge for the known issues in blockchain and encourage people to craft ICOs and token sales around those?

(The first person who can name the executive who was behind both the Zillow and Netflix challenges will receive 10 ATHAU tokens).

William Mougayar talks about Tokenomics – but beyond that and the ICO Pass/Fail  meter we did last week (send me a message at if you want that) if people can explain how their token solves a major blockchain issue AND has a smart incentive model – that seems like it would be a lot easier for investors to bet on the great offerings.

I would think Tokenmarket and Smithandcrown and other sites would have more tools like that to help other investors – but that’s a post for another day.

Here’s that link to that token site if you are interested (