Initial Coin Offerings, commonly known as ICO’s have changed a lot over the last year and a half. The two main reasons were the bitcoin price fluctuations and a maturation of the ICO market.
Bitcoin soared and plummeted
Bitcoin and ethereum were the two main vessels for investing in ICO’s. When the bitcoin price rose so quickly during the latter half of 2017 it had an immediate impact on the ICO market. Rather than using their coins to speculate in ICO’s – investments that take time to mature – people focused on bitcoin itself. With the soaring value people were more reticent to speculate using bitcoin, and therefore ICO’s started to struggle gaining momentum behind their projects.
Maturation of the ICO market
The ICO market has matured over the last couple of years. This means that people are becoming more aware of the factors that control the market, as well as, what makes a good ICO and not. This means that there will be less speculative ICO’s out there. This, of course, does not mean that we will not see fun meme projects like Doge or Cryptokitties. But it does mean that there will be more focus on what value the coin adds to the market, probably with a focus of what function the coin serves. We are also more likely to see more of traditional venture investing, albeit crowdsourced and utilizing crypto technology, rather than pure ICO’s.
ICO opportunities will continue
There will continue be opportunities in the ICO market. The number of exchanges is increasing, and likely will continue to do so, as traditional investors enters the scene and there is still very hard for new ICO’s to be listed on a decent exchange.
Also, there is a growing number of services that target the intermediary place between the ICO exchanges and your bank account. As always it is important to compare these and BankWeb is as good a place as any to do so.
We will look into what factors you should consider when investing in an ICO in the future. So keep checking in with us.