Bitcoin
BTC$70 391.42

0.94%

Ethereum
ETH$3 572.68

0.27%

Tether
USDT$0.999924

-0.02%

Binance Coin
BNB$590.45

2.95%

Solana
SOL$187.31

0.55%

XRP
XRP$0.622110

0.29%

Is the ICO market dead, or is it just evolving?


15 Feb 2019

Pretty much everyone in the crypto industry knows of ICOs (Initial Coin Offerings) or has at least heard of the term. For those who are not sure about what this is, it is a type of a crowdfunding campaign where companies (usually startups) start offering investors a new token in exchange for their investments. However, the model has one big flaw, and that is the fact that it is based on trust.

Those investing in ICOs are investing in the coin's future, and only if they believe that the coin truly does have a future. While flawed, the model became quite popular in 2017, especially when the prices of cryptocurrencies reached their all-time highs.

Unfortunately, ICOs quickly lost their popularity when the hype died down, and for several reasons. The bear market that came in early 2018 cut the crypto progression short, and coins started losing value. New tokens quickly died out due to their projects being weak and unable to survive the unfriendly conditions, but there were also a lot of scams and scammers, looking to trick new investors via fake projects.

Not only that, but the regulators also took an interest in ICOs, which led to additional problems for the model. As 2018 progressed, many were quick to call ICOs dead and extinct, although the question now is whether or not this is really true?

Are ICOs dead?


The fact is that ICOs are not dead, or at least not yet. They are definitely a rare sight these days due to the loss of popularity and trust, but they can still be found from time to time. The investors' interest in them has dropped by roughly 90%, judging by online search results, but one recent token sale, in particular, showed that ICOs still have supporters in the crypto space.

We are, of course, talking about the BitTorrent (BTT) token sale that was held on Binance Launchpad on January 28th. While it should be noted that this is a special case — since the largest exchange in the world supported the token sale, meaning that many trusted its choice — it still sold off all of the BTT tokens in about 15 minutes. The sale would have been finished even sooner if the platform did not experience problems due to the massive amount of activity caused by interested investors.

Furthermore, the Launchpad has announced another token sale — Fetch.AI (FET) — which is scheduled for February 25th.

With that in mind, it becomes clear that ICOs are still alive after all, even though they might need special conditions in order to be successful and trustworthy. However, there may be more to the argument that they are evolving into something else.

The shift from ICOs to STOs


Another thing that many have noticed is the shift from ICOs to STOs, which may be viewed as the next step in the evolution of token offerings. While ICOs offered utility tokens which were expected to be valuable in the future, STOs (Security Token Offerings) are selling securities, making them somewhere in between ICOs and IPOs.

This model is generally seen as much more secure from the investors' and companies' point of view alike, as the STO remains compliant with the regulators' guidelines. Indeed, the crypto industry seems to view STOs as the future, or at least the next step in the progression of token offerings, while the old model loses support little by little.

It should be noted that STOs still have a long way to go and that the interest in them has only starting to grow, but there are still more STOs chosen by startups for every ICO token sale out there. While exchanges are still uncertain regarding securities due to regulatory issues, this is currently the most promising alternative to the flawed model that is ICO.


Related

NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
Is a forex hedging strategy effective?
Is a forex hedging strategy effective?
Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Can ChatGPT trade better than humans?
Can ChatGPT trade better than humans?
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
How to Trade with ChatGPT. Tips and Tricks of AI Trading
How to Trade with ChatGPT. Tips and Tricks of AI Trading
Mastering stop loss for indices trading: 5 essential strategies
Mastering stop loss for indices trading: 5 essential strategies
Introducing Exness Team Pro - The voice of the markets
Introducing Exness Team Pro - The voice of the markets

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 75.6% 43 $70 391.42 0.94% 5.01% $1 384 341 400 555 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 72.8% 48 $3 572.68 0.27% 1.54% $428 977 862 024 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 91.2% 1 $0.999924 -0.02% -0.05% $104 446 201 920 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 59.2% 80 $590.45 2.95% 7.22% $88 285 002 059 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 57.6% 89 $187.31 0.55% -0.74% $83 222 109 252 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 80.4% 31 $0.622110 0.29% 2.78% $34 144 035 760 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 92% 2 $1.000218 0.01% -0.04% $32 153 029 155 USDC 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 68.8% 68 $0.199737 9.05% 30.01% $28 691 994 148 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 66.4% 67 $0.650726 0.41% 2.90% $23 152 771 268 ADA 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 59.2% 88 $54.89 -0.01% 0.77% $20 716 622 984 AVAX 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 54.8% 94 $0.000031 2.01% 14.90% $18 165 782 714 SHIB 7 days price change
12 Toncoin (TON) TON Toncoin predictions 58.8% 88 $4.94 0.34% 18.78% $17 146 680 926 TON 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 76% 52 $9.60 0.99% 2.69% $13 699 416 852 DOT 7 days price change
14 Chainlink (LINK) LINK Chainlink predictions 75.2% 42 $19.51 -0.15% 7.48% $11 452 015 677 LINK 7 days price change
15 Bitcoin Cash (BCH) BCH Bitcoin Cash predictions 68.4% 60 $561.78 15.30% 30.22% $11 056 516 456 BCH 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.