New Crypto Reality: Production and Services to be Tokenized

In the framework of this short text, we will see what industries are represented among real-production ICOs and what are common features of these cases. For this purpose, we will have a look at statistics provided on icobench.com. Also, we will see what advantages they give to those who decided to invest in them.

For a start, it seems reasonable to define which companies shall be considered as real-production ones. According to the Financial Times Lexicon, real economy is “The part of the economy that is concerned with actually producing goods and services, as opposed to the part of the economy that is concerned with buying and selling on the financial markets.”

So, we can see that the area covered by the definition is broad enough to include all fields other than related to speculative activities. On icobench.com there are thousands of ICOs. Volume of the article is not enough to analyze all non-financial token offers. So, it is senseful to confine ourselves to one, “most real-production” ICO group that is manufacturing.

Totally, under “Manufacturing” category, there are 107 ICOs. They all are from different spheres of real production and can be grouped. Let’s look how: in the table below all ICOs from the manufacturing category are broken down into groups according 2 parameters (industry and region).

Notes:

1. Despite the fact that there were mentioned 107 ICOs in the category, 2 of them were not considered as they are provided for pure speculative operations.

2. Regions here are quite big and inclusive: for example, “Americas” include USA, Canada and South America; Russia is regarded within “Europe”.
   

As we can see, most of the manufacturing ICOs originate from Europe. It can be explained by fact that production facilities in the region are expensive and not as attractive for conventional investment as plants in Asia where labor force is relatively cheap. It makes European enterprises look for additional investment sources, such as making their own tokens and organizing ICOs.

As for the considered industries, two most massed groups are “Agriculture and food production” and “Supplies and commerce”. Reasons for that can be relatively low costs for launching new production, not very sophisticated technologies and high demand in the market.

Positive Impact of Real-Production ICO Advance

What are possible outcomes of the given trend development? In our opinion, it brings more decentralization into the manufacturing sector where enterprises become more efficient, independent and closer to their customers. Since the degree of innovation and attractiveness for consumers is measured with success of ICOs, development of the sector will be more sustainable, transparent and controllable for token holders.

Another important advantage for token buyers is that scam is not likely to take place. Since the project core business is tangible (with possibility to visit production sites and facilities), it makes no sense for scammers to forge ICOs with “real business” covering. Unless potential investors are inexperienced and ready to buy everything that looks nice.

Let’s come back to the revealed main trend in the real-production ICO development. Most of such ICOs are from Europe and related to agriculture, that implies stable demand for the offered products and well-established distribution channels. Tokens tied to these manufacturing companies are not subject to market fluctuations (nonvolatile). The main reason to contribute to similar projects is securing profit based on token value growth.

Here we go: contribution to ICOs backed by real production leads to creating new value in the form of tangible goods, securing income as the token value is nonvolatile, decrease in scam project number.

To conclude with, the obvious trend is that, within the manufacturing sector, more and more European companies and agricultural productions are being tokenized. The Old World goes crypto and eco.