Autonomous NEXT and Latham & Watkins LLP analyzed the regulations covering most of the crypto hubs of the globe. The criteria for mapping each country’s respective regulation standpoints are: (1) Negative, (2) Neutral, (3) Mixed, and (4) Positive. Our findings show that the most active countries in the crypto space such as Japan, South Korea, U.S., and Russia have both positive and negative indicators of support within the space; whilst some countries such as Brazil, China, India, and Nigeria have implemented outright bans on cryptocurrencies, mining, or ICOs.
Autonomous NEXT have modelled the cost breakdown relating to launching an ICO. The breakdown has identified 3 key areas of consideration: (1) Crypto law firm cost, (2) ICO platform cost, and (3) Liquidity.
Crypto law firm costs are split into two phases relating to the initialisation of the project and the items relating to the operation thereafter, both of which constitute around 20% of the overall launch costs. ICO platform costs relate to the construction and marketing costs of the ICO, including the payment for positive ratings, which accumulate to around 20% of overall launch costs. Liquidity relates to the launching of the ICO on a single crypto exchange which accumulate to a considerable 60% of overall launch costs.
Our findings were that the capital outlay needed to launch a crypto fund are considerably higher than originally thought, and as the space becomes more institutionalized so it’s likely to see these costs normalise.