13 May 2019
The pressures put on the ICO market by the events of the last ten months has to lead to an almost total collapse in the ICO market. An illuminating article published in the Wall Street Journal has shed some light on how bad the situation really is for the vast majority of ICOs launched in 2019 so far.
So far, Q1 of 2019 had seen 118 million dollars raised, which is a paltry sum compared to Q1 of last year, when 58 times the amount was raised in the same time frame. The Wall Street Journal used TokenData as its source, which is a leading ICO analytics website.
The two dominant factors that have to lead to this sorry state of affairs, at least according to the Wall Street Journal, is the overall bearish sentiment that was prevalent through the entire first quarter of this year. It was only at the very beginning of the second quarter, in April to be precise, the market woke up and has been going strong ever since. However, even with bulls in the front row and the trading market looking to remain bullish for the foreseeable future, it does not mean that things will look better for ICOs this year.
This is mainly due to fears, among investors and startups alike, of the punishments that have been meted out for non-compliance by various regulatory bodies. The SEC is the main driver behind these fears, particularly in the United States, as they charged a cryptocurrency based company in February for selling unregistered securities. The fact that this happened to Gladius Network, despite self-reporting, has struck fear into the general ecosystem.
The ICO market was not just influenced by bears and regulators, no matter how scary they may be. If people in the market see a good deal or the opportunity to make money then very little can be done to stop anyone who wants to truly invest in the next big crypto token offering.
There is enough information on past ICOs to get a feel for the risks involved and the risk is quite high. There have been around 2500 projects launched since 2017 and of these, only 45% managed to successfully raise money. This gives startups who might ignore regulatory backlash as a mere nuisance if an ICO had a greater chance of success.
On the other side, investors look at the figure of 15% with dread. This 15% figure applies to how many coins are trading above the levels above or equal to their offering price. Combine that with the fraudulent ICOs that took the money and ran – it is not difficult to imagine investors being very wary of where they will put their money in the future.
While ICOs seem to be completely faltering, and many even seem to believe that they will be gone altogether in the near future, all is not lost. New methods of doing the exact same thing have come about due to the pressures described earlier.
IEOs are doing due diligence, marketing and listing coins in addition to doing the token offering. This has been one way that the market has corrected itself independent of the startups. IEOs offer some measure of security as at least the scam ICOs will not be as prevalent. After all, the costs to do an IEO are high enough to discourage fly-by-night operations.
STOs are making a grand entrance into the vacuum that was left behind by the drop off in ICOs and they are better in every way. They are more compliant with regulations and offer tangible rewards compared to ICOs.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||Volume 24h|
|1||BTC||Bitcoin predictions||88.4%||18||$48 040.82||-1.15%||4.49%||$904 138 209 931||$27 168 138 382|
|2||ETH||Ethereum predictions||76.4%||50||$3 406.76||-3.36%||-0.59%||$400 587 974 492||$14 083 515 721|
|3||ADA||Cardano predictions||68%||67||$2.37||-1.97%||-9.16%||$75 770 110 129||$1 761 903 242|
|4||BNB||Binance Coin predictions||64%||71||$409.51||-2.13%||-1.24%||$68 853 321 231||$1 118 665 295|
|5||USDT||Tether predictions||92%||1||$0.998941||-0.15%||-0.13%||$68 220 155 150||$55 238 355 832|
|6||XRP||XRP predictions||69.6%||61||$1.074680||-1.02%||-2.67%||$50 104 002 644||$2 001 954 604|
|7||SOL||Solana predictions||60%||90||$159.62||-0.39%||-11.29%||$47 403 146 839||$4 342 326 777|
|8||DOT||Polkadot predictions||64%||81||$33.87||-3.28%||5.40%||$33 450 932 962||$1 531 270 854|
|9||DOGE||Dogecoin predictions||63.2%||75||$0.238990||-2.72%||-2.75%||$31 391 728 418||$814 388 693|
|10||USDC||USD Coin predictions||90.8%||1||$0.998865||-0.13%||-0.15%||$29 376 466 972||$1 886 680 146|
|11||AVAX||Avalanche predictions||68.4%||69||$72.57||1.86%||14.34%||$15 986 861 751||$1 646 527 720|
|12||UNI||UniSwap predictions||69.6%||64||$24.41||-2.34%||2.68%||$14 931 117 171||$258 525 925|
|13||LUNA||Terra predictions||69.6%||64||$35.81||0.61%||-13.26%||$14 384 328 816||$821 923 843|
|14||LINK||Chainlink predictions||74.4%||51||$28.31||-3.15%||0.91%||$12 837 320 531||$907 387 794|
|15||BUSD||Binance USD predictions||95.2%||1||$0.998729||-0.16%||-0.14%||$12 797 266 194||$4 423 728 987|
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