The Fall Of The ICOs
After missing out on Bitcoin and not investing enough in ETH, there is a fear of missing out. The excitement of taking part of an ICO and being an early adopter with the hope to make a lot of money and see the project you backed being massively adopted.
Who wouldn’t like to to be an early investor in Facebook? To honestly believe in its vision throughout the years and making a fortune by looking at the bigger picture is something every ICO investor hope to achieve.
You can compare the same excitement and sensation we saw almost every year when people were queuing outside for many hours to get their hands on the latest iPhone. This year iPhone 8 had the worst turnout so far.
Since China banned ICOs and cryptocurrencies trading, I noticed a substantial drop in successful ICOs.
We are now seeing more and more ICOs that end up refunding the money they raised due to the fact they weren’t able to raise enough money.
(data from coinschedule)
Most of the ICOs until August reached the hard cap. Some in few minutes other in weeks.
This year so far Infrastructure money invested has dramatically increased, the percentage in some other sectors has been decreased.
We can explicitly notice new ICO categories been created this year.
The huge amount of ICOs and similar projects being launched has created dropped in ICO money raised which is currently very difficult to reach a hard cap.
A year ago, most of the ICOs projects that raised money were unique and were never done beforehand, therefore to the investors they were disruptive and seemed like a good investment.
Today for every issue that we are trying to solve via blockchain technology many projects claim that their product will resolve the issue and disrupt the industry.
Tezos had a very successful fundraising and reaching over $230 million in their ICO, since there ICO nothing has been done to seem to work toward the roadmap that was stated in the whitepaper. A recent lawsuit was launched toward Tezos founders.
We are currently in a bullish market; we are now at an all-time high in Nasdaq and many other prominent listed companies.
The traditional investor doesn’t feel the need to move his money and invest in altcoins or ICOs, a market with no regulations and extreme volatility.
To summarize, we will see fewer and fewer ICO companies reaching the soft cap and a hard cap will be something to dream from the ICO boom we had in the summer.
The cryptocurrencies blockchain infrastructure such as ETH, ARK, KOMO, EOS ,IOTA ,Cardano and others will focus on increasing their scalability and by doing so, we should see some other players and potentially mind-blowing ICO with actually a working product being successfully funded.