ICOs are a hot topic this past couple of days in our crypto news since they are gaining popularity each day. However, over the past two years, initial coin offering projects managed to raise more than $30 billion but most of the projects have little or none to show.
Most ICO projects don’t really have good results in term of user growth and blockchain adoption and user activity on decentralized systems are quite low. Despite the fact that a lot of tokens expressed great success, this is still not enough.
For example, Binance Coin made a huge success when it was launched and thousands of merchants started to use the token to accept crypto payments. Other tokens such as 0x also proved to be successful for facilitating liquidity among the many decentralized exchanges.
However, the larger majority of the tokens still haven’t proved to be very successful. Uber’s Sam Gelman explained:
“After $30 billion invested in the past two years in ICOs there still isn’t a single crypto app with a real user base for anything other than speculating on crypto. The BTC price movement is tough, but the lack of real user base for anything they’re investing in is tougher.”
The ICO ecosystem is expected to get hit even harder and this will be a problem for both investors and project makers. Only this week the SEC shut down two ICO projects characterizing them as unregistered security offerings.
Experts believe that the Bear Market will help to filter the projects useful to useless and those that will manage to stay afloat will be projects with a great roadmap, active user base, and a competitive model.
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