Bitcoin
BTC$62 488.63

-3.64%

Ethereum
ETH$4 068.60

-3.68%

Binance Coin
BNB$487.00

0.41%

Cardano
ADA$2.16

-3.51%

Tether
USDT$0.999949

-0.01%

Solana
SOL$210.38

12.01%

Year of Repair as ICOs Trend Towards Zero


13 May 2019

It seems that 2019 will be the year of repair for ICOs, which may stop existing at all. That is what two prominent analysts in the cryptocurrency industry seem to think.

Trends moving towards zero


Rebecca Ungarino tweeted a graph showing the severely diminishing figures that ICOs are bringing in this year and postulated that the figure is trending towards zero. Which in effect means that ICOs, as we know them today, will cease to exist.

As can be seen in the tweet, it is a continuation of a trend that has been ongoing since the middle of last year and shows no signs of stopping at all. Another analyst has a different explanation for this trend than the usual doom and gloom that many have postulated.

Tom Lee, a notorious cryptocurrency bull, say that crypto startup seems to be pivoting from coin and token offerings to equity offering that is more common in the larger startup world. He attributes this to maturity in the market overall. Further, he thinks this has to do with projects looking more towards value creation than the previous money grab scheme that was prevalent in the ICO space.

Providing utility to end users, while raising money via equity seems to be the new norm for crypto startups as they face the harsh truth that they are not so different from normal startups. He further went on to say that he believes that "2019 is a year of repair, setting up for a strong recovery in crypto prices broadly in 2020. Any improvements in supply/demand dynamics are positive for prices, and hence, the slowdown in ICO funding is a net positive. The sentiment is also quite muted, which is positive.”

Google showing signs of ICO downfall


Looking at figures that can be found and checked via Google analytics, it is easy to see the massive downturn in search terms relating to ICOs. There is some positivity around the whole situation, as the number of searches for STOs has shot up dramatically. So dramatically in fact that one could argue that they are inversely proportional to each other.

The problem is that since STOs are not a utility token, they do not represent a stake in the issuing firm. STOs are only useful when the startup has finally launched, and not a second before that – which has already made some investors leery of that particular option.

Another key factor leading to the downfall of ICOs is the lack of utility among the tokens that have been released. When compared to Bitcoin, which is finding ever more uses around the world, ICO tokens have by and large failed to make an impact. This is the result of startups that thought by simply sticking a token onto an existing business plan; they could somehow "revolutionize" their market place.

Many investors, even during the height of the ICO craze, had pointed out that these types of startups were not going to be able to compete in the segments that they wanted to, no matter how nice their tech specs looked.

One particular example is the Airbnb competitor called Bee Token. Their ICO managed to snag 15 million dollars in funding, and it is one of the companies that have been found wanting. The idea was to cut out the middle-man (Airbnb in this case) and let a decentralized platform handle the transactions between hosts and guests. The technology behind the token was solid, and the team of ex-Uber developers was on board and ready to change the world.

While it is a good idea on paper, and sure 15 million is a lot of money, but Airbnb has a market valuation of 31 billion dollars already. They have no problem raising billions to keep their business going and no one, at least at this stage, is going to pose much of a problem to them at this time.

Author: Ali Raza for: Crypto-Rating.com

Related

Bitcoin futures ETF in danger of hitting upper limit for contracts
Bitcoin futures ETF in danger of hitting upper limit for contracts
Ethereum sees picture perfect rejection at all-time highs
Ethereum sees picture perfect rejection at all-time highs
Ethereum nears its own all-time high as ETH price retakes $4K
Ethereum nears its own all-time high as ETH price retakes $4K
Bitcoin gains $2K in hours after BTC price bounces near previous all-time high
Bitcoin gains $2K in hours after BTC price bounces near previous all-time high
Bitcoin futures ETF hits $1B AUM in a record-breaking two days
Bitcoin futures ETF hits $1B AUM in a record-breaking two days
USDT is minted for crypto as $1M bounty offered to unpick reserves
USDT is minted for crypto as $1M bounty offered to unpick reserves
Bitcoin sees its highest ever daily close as BTC/Euro pair hits all-time highs
Bitcoin sees its highest ever daily close as BTC/Euro pair hits all-time highs
Cardano price paints 'death cross' with ADA at two-month lows vs. Bitcoin
Cardano price paints 'death cross' with ADA at two-month lows vs. Bitcoin
Next Bitcoin price crash will be shallower than 80%, says Pantera Capital CEO
Next Bitcoin price crash will be shallower than 80%, says Pantera Capital CEO

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64% 82 $62 488.63 -3.64% 4.14% $1 177 967 573 023 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68.8% 59 $4 068.60 -3.68% 6.60% $480 218 275 266 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 65.6% 64 $487.00 0.41% 5.45% $81 232 757 218 BNB 7 days price change
4 Cardano (ADA) ADA Cardano predictions 90% 12 $2.16 -3.51% -0.25% $71 124 377 873 ADA 7 days price change
5 Tether (USDT) USDT Tether predictions 94.8% 1 $0.999949 -0.01% -0.03% $69 609 559 941 USDT 7 days price change
6 Solana (SOL) SOL Solana predictions 71.2% 53 $210.38 12.01% 31.71% $63 287 438 999 SOL 7 days price change
7 XRP (XRP) XRP XRP predictions 76.4% 50 $1.092820 -3.33% -2.91% $51 303 932 082 XRP 7 days price change
8 Polkadot (DOT) DOT Polkadot predictions 60.8% 76 $45.02 2.47% 12.55% $44 462 779 671 DOT 7 days price change
9 USD Coin (USDC) USDC USD Coin predictions 94% 1 $1.000021 0% -0.03% $32 366 610 328 USDC 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 72% 57 $0.242619 -3.41% 5.70% $31 977 359 825 DOGE 7 days price change
11 Terra (LUNA) LUNA Terra predictions 68% 63 $44.79 9.15% 22.52% $17 986 948 803 LUNA 7 days price change
12 UniSwap (UNI) UNI UniSwap predictions 74.8% 55 $26.28 -2.63% 1.68% $16 074 093 687 UNI 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 68% 64 $66.36 7.76% 20.65% $14 618 840 973 AVAX 7 days price change
14 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 61.2% 82 $62 554.90 -3.80% 4.06% $13 830 451 764 WBTC 7 days price change
15 Chainlink (LINK) LINK Chainlink predictions 76.8% 48 $29.50 4.25% 10.85% $13 553 897 471 LINK 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.

© 2015-2021 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.