The Indian blockchain start-ups, already fighting against odds to establish themselves in the market face a harsh reality up against them. Going forward these companies need to have a product ready before raising money through ICOs. This comes as a result of the ICO market slowing down drastically and several instances where the money provided by the ICO was not used in developing product or service.
The nascent nature of the technology has not helped in developing product and one of the major challenges faced by the start-ups is the availability of blockchain trained professionals. Scaling will also be an issue since blockchain does not allow transactions without users.
Alay Mehta, founder of blockchain startup ChainEx mentioned that only a white paper won’t suffice and working prototype is a prerequisite to reach the ICOs. Thought this move has a direct impact on start-ups, it will help to identify fraudsters and protect investors. Akshay Aggarwal, who runs a community of blockchain enthusiasts compares this slowdown to the one start-ups faced in mainstream funding during 2016-17.