Investment Bank Doomsayers Predict Crypto Extinction Event in "Mass Market Wipe Out"

Cryptocurrency market observers may be calling for an impending bull run, but despite total market cap surging beyond the $430 billion mark, some financial analysts remain unconvinced.

According to investment banking company GP Bullhound, cryptocurrency prices are set to suffer a massive 90% correction that will lead to a "Mass market wipe out" in the next 12 months.

One of the most notable calls presented within the report is the inevitable maturation of the ICO market, with an emphasis on the increasing presence of large-scale ICOs.

"This ICO will also likely be the first ICO based upon a consortium chain which will see several corporates join forces in a private, permissioned blockchain before setting the protocol free for the wider universe of early adopters".

A key element of the GP Bullhound "Year in blockchain" outlook is the restructuring of the ICO model.

The report highlights the inefficiency and unsustainability of the current ICO model, stating "No longer will companies be able to launch an ICO off the back of a white paper." According to GP Bullhound, the key to successful ICO execution will involve organization track records, transparency, and founder credibility.

Despite the negative outlook of the report, GP Bullhound present the "Mass market wipeout" not as a true extinction event, but as a "Thinning of the herd," predicting that after the "'crypto-winter" passes, growth dynamics for the precious few survivors will be unprecedented.

GP Bullhound's predictions regarding the disruption of the ICO model and the emergence of a new token distribution paradigm are in line with the current movement of the ICO market, which is experiencing increasing pressure from regulatory bodies around the world.

As investors adapt and respond to fraudulent or unsuccessful ICO models, de facto requirements for the launch of an ICO are beginning to manifest that reflect the predictions made by the investment firm regarding the future ICO model.

"Average equity funding pre-ICO will rise to over USD 20m for successful ICOs in 2018".