Stefan Heilmann is a frequent speaker at most of Webrazzi’s conferences and a believer in the blockchain revolution. He is the head of IEG’s Blockchain, E-Health and AI departments. Plus he is the CEO of the company that has recently launched; IEG Blockchain Dunds in San Franscico, USA. IEG is a leading investment bank in Europe and has been in the financial industry for over 18 years since its inception in 1999.
The Blockchain Market Is 90 Percent Retail
According to the 49-year old, the blockchain and cryptocurrency market is currently made up of 90 percent retail investors and needs to be institutionalized to achieve more transparency. He began his talk at the Blockchain Venture Summit by identifying some of the negative aspects of blockchain and cryptocurrencies that have led to bad press and suspicion from investors.
According to Heilmann, the lack of KYC, and persistent money laundering allegations, have been the major reason behind full scale regulation and scepticism in the crypto and blockchain space from governments across the globe.
Lack of Valuation in the Industry
He mentioned that there are currently no tools or mechanisms for valuing ICOs and blockchain companies. The lack of valuation models for utility as well as security tokens and ICOs “is a risk and a problem that will need to change”, he said.
Stefan Heilmann also responded to Charles Michael Yim’s remarks on the importance of quality whitepapers in effectively marketing ICO and Blockchain companies. According to him, white papers are mostly made up of exaggerated promises without working on building value in their product.
He warned entrepreneurs at the event that such questionable marketing strategies will lead to legal problems in the future, once the market is institutionalized. He compared the ICO space to the gold rush of 1994 – 1995 and mentioned that although blockchain is a huge revolution with the capacity for transforming transactions of value, there are still lots of problems to be solved.
Blockchain Is not Built for Anonymity
Blockchain is the most transparent system
Heilmann indicated that the fact that blockchain is a decentralized public ledger makes it a utility for moving digital assets on the Internet. He said that he is positive about the changes that blockchain would bring in the future.
However, until these challenges are eliminated, blockchain’s potential will be undermined, given the rise of altcoins with zero business models such as Jesus coin (a cryptocurrency that is backed by nothing more than the belief in forgiveness).
Stefan Heilmann urged blockchain companies to embrace a fact-based approach and stated that this budding industry is a new asset class for most companies, requiring different forms of regulation. He also identifies Stellar as one of the smart projects that has a chance to impact the future.
Lastly he said that “banks are shying away” from the cryptocurrency world as a result of the inconsistencies that currently exist. According to Heilmann, regulators are set to forcefully enter the industry and whitepapers will be eventually replaced by private placement memorandums.
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