ICO or Initial Coin Offering, for beginners, is known to be the counterpart of IPO or Initial Public Offering in the cryptocurrency space. In 2017, ICO investing has been tremendous, but due to market conditions, 2018 was not a good year of the said offering.
Some cryptocurrency analysts believe that due to the 2018 turmoil of ICO investing, the said financing scheme is considered over and dead. However, other experts in the field are acknowledging that this mode of crypto investment is only evolving.
Though 2018 has been a rough year for ICO, it could also mean that it is changing and finding its rhythm in the cryptocurrency market. While there are many disadvantages to the current trend recorded of the coin offer, there could also be lessons to learn for it to rise and grow this 2019 duly.
Eric Ervin, Blockforce Capital’s CEO, has spoken about the current issue the ICO is facing. According to him, ICOs are not considered dead. Investors in the cryptocurrency market are only being meticulous and being pressured to account to look for more credible and viable projects with the digital currency.
ICO is only facing transition especially in the rise of digital tokens’ sales. Cryptocurrency continues to mature in the financial field. With this, many more people are getting aware and familiarized with the Blockchain technology. Thus, STO or Security Token Offering, that is launched for every ICO that goes live shall be expected to increase in volume or be more prolific this year.
This 2019, investors are more likely to take the initiative or participate in capitalizing with ICO when the bull market is happening. It is because crypto holdings are more valuable and substantial during this time.
ICO is not the only thing that is facing transition and challenges in the past year. In fact, the crypto market has also suffered a sharp decline that caused many digital currency investors’ net worth to drop.
Once the crypto holders and investors felt more confident in the market, they are more likely to partake and go all out in ICOs. Given that the market is undergoing challenges, it is normal for investors to demonstrate conservatism to protect their net worth. This move is perfectly reasonable.
In any trading and investing, it is standard for investors to be less interested whenever the market is falling downslope. Hence, this is also the same for ICOs and other currency from a crypto perspective. While this may be considered a winter for ICOs, there is a sure ‘crypto spring’ that will happen.
It is evident that what is happening with ICOs is just part of the usual cycle. When the funding is declining, the entire market set to slow down. However, it will inevitably escalate again – just a cycle. Investors should not worry about cryptocurrency and participating in ICOs. The said digital coin offering has not died, it just went through the typical cycle in any finance industry.
2019 is a lot more hopeful for the crypto market. Its movement will rise again to some extent and shall attract more and better investors.