# kaal:claim:3606663-006

**Claim.** By 2019 the ICO market had lost its defining advantage over venture capital: because most ICOs between 2018 and 2019 imposed one to three year lockups, neither market offered early liquidity to investors or issuers, making the two substantively similar.

**Type.** failure  **Support.** argued

**Holds when.**

- ICOs conducted between 2018 and 2019
- lockup periods of one to three years

**Source quote.**

> Most ICOs during that period required one to three-year lockup period for their investors. Accordingly, the ICO market in 2019 is very similar to the venture market in the sense that neither of these markets offers early liquidity to investors and issuers.

**From.** Kaal, *Digital Asset Market Evolution* (2020), 2. Initial Coin Offerings, page 16

**Cite as.** Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663

**Verify.** sha256 of source PDF `d1d4a15a293b715bb6a5a32e689f59c3a1587915039ba9a1cf4eeb8ee2a1e57c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202020%20-%20Digital%20Asset%20Market%20Evolution.pdf

**Failure mode.** lockups erase the early liquidity advantage of ICOs  (family: token-transferability-defect)

**Topics.** securities-law, innovation, defi, economics

**Keywords.** ico, venture-capital, liquidity, lockups, market-convergence

**Related claims.**

- supersedes: https://wulfkaal.github.io/claims/3406323-005
- supports: https://wulfkaal.github.io/claims/3406323-006

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.