The boom in the first coin offerings determined the blockchain industry in 2017 and the first half of 2018 with an inflow of capital to finance many new projects and related services.

Ahead of Ethereum’s fifth anniversary, Cointelegraph interviewed Kosala Himachandra, the founder of MyEtherWallet. As he revealed, the spike in activity in 2017 turned the single operation, which began 10 days after Ethereum launched, into a reputable software company.

MyEtherWallet was one of the most popular and easy-to-use wallets at the time, and it had full support for ERC-20 tokens – which is vital for dealing with an ICO. The most popular alternative was Ethereum’s crap wallet, a full-fledged node wallet that required a long sync to use.

Himachandra said the transformation of MyEtherWallet into a “trusted brand” coincided with the ICO. “It was definitely 2017. I can’t think of a specific point in time, but the ICO craze was the starting point for changes.”

Lessons from the ICO era
The ICO trend started in January 2017 and peaked towards the end of the year and ended as fast as December 2018:

“I saw that [a drop] for sure. I didn’t see that at the beginning, but at the same time I knew that government organizations would definitely participate.”

The regulatory authority’s interest in ICOs was demonstrated in July 2017 by the so-called “DAO report”, in which the crowdfunding initiative 2016 in the form of Ethereum DAO was analyzed. The US Securities and Exchange Commission emphasized that the DAO tokens are a security indicator, indicating that similar attempts would be prosecuted:

“When the SEC started getting involved, I learned that this ICO may not or may not survive.”

According to him, this audit was invaluable for subsequent projects. He said, “I think everything that happened at that time was a good lesson for all of us because these entities were busy at full power and we now know what to do.”

With this knowledge, new projects can code their code to “overcome those hurdles” that leave government agencies alone.

“It was a good lesson for some of DeFi’s projects because, if it weren’t for that, some of these various projects could get into trouble now because the SEC may also be pursuing them,” said Himachandra.

Cointelegraph previously reported that legal considerations were likely an important factor in developing the compound token distribution model, with an emphasis on usage rather than direct payment. Hemachandra noted that the log adds an extra layer of protection against audits as Compound Labs no longer has control over smart contracts.

However, he objected to the fact that these maneuvers were necessary:

“It’s crazy how we try to create a decentralized system that is still constrained by the central authorities that put pressure on everything we do.”

Source: CoinTelegraph