The whole ICO space right now is operating in a pendulum model and investors were all initially looking at high growth and quick money, which is why they got into trouble. Right now, the market is moving towards more stability and less profit expectations, which means that the prices might not give you massive growth but they’re going to give the investor a sense of safety, i.e., there is a lower amount of risk.
“From a growth perspective, this is a very normal cycle” – KEY
ICO and crypto experts were asked to give their perspectives on the future of ICOs and cryptocurrency market in a BrightTALK panel. The current bear market has painted a gloomy picture and as a crypto enthusiast, I took this opportunity to shine a light in the dark and share thoughts on strategies that could thaw out the “frozen ICO Market” due to seesawing public sentiments.
The Market is Still There
I would say that the ICO market is still pretty much there. It’s not going away and will be there for many years to come. The game could change because the markets started with little to no idea on how an ICO functions and how other factors affect its directions in 2017. Scams came up from which people learned what is right from what is not. We’re in the learning phase even now and as we learn, we can come up with a better system, probably with escrow and multiple checks in place, like the IICOs (Interactive Coin Offerings) and the other models that are being proposed every day now.
At the same time, we are also attracting enterprises to start their own ICOs which, at this point, brings on more credibility to the ICO market. The number of fully funded ICOs has declined over the last six or eight months, and the number of ICOs have greatly increased which led to failures of a good number of ICOs. But if you look from a growth perspective, this is a very normal cycle.
Most ICOs used to be okay with having the funds but they didn’t focus on the product. Now, they come, not only with an MVP but an actual finished product because they are aware that the market is no longer going to accept someone with just a white paper and the basic structure. As it progresses, the demand from the investors is going to force quality from the startups.
As the Pendulum Swings…
The whole ICO space right now is operating in a pendulum model and investors were all initially looking at high growth and quick money, which is why they got into trouble. Right now, the market is moving towards more stability, and less profit expectations, which means that the prices might not give you massive growth but they’re going to give the investor a sense of safety, i.e., there is a lower amount of risk.
This has to come to a point where it is a win-win for all. Until then the market is going to have various cycles of learning, and this is not going to be the last. This is, in fact, the first cycle that we are in. I already know that we have IICOs, dICOs, eICOs and third-party audited ABCs and other such combinations coming up.
Over the next few years, government regulation and government adoption of the blockchain and its spinoffs will increase. We will come to common agreement terms with not only the regulators but also with investors and founders via a beautiful global platform.
When the crowdfunding platform initially started, it also went through so many scams where you donated to them and you don’t get anything back. That is how every market started, even the most trusted IPOs. Just being in the garage, they would launch an IPO in the early dot-com bubble. This is exactly the same cycle that every innovation goes through and this is perfectly fine. In fact, it’s good for the market. And that’s my take on it.
Do you think that the state of the current ICO market is just part of the cycle or is there more to it? Sound off in the comments below.
Images courtesy of DepositPhotos