ICOs were the best and worst thing to happen to the cryptocurrency industry.
ICOs were the best and worst thing to happen to the cryptocurrency industry. Like it or not, it was a catalyst for driving interest in the space, spurring innovation and leading its growing adoption. In 2017, companies raised more than $5.5 billion through the ICO route and in just the first three months of 2018, it reached a peak of $6.3 billion.
This injection of funds into the market created a surge of interest on the mainstream media’s part, and consequently, this drew in more and more crypto-curious individuals into the blockchain world.
However, unfortunately, when Ethereum’s price took off, it gave many of the original developers a seven- to eight-figure reason to cash out. Many developers who helped to build, launch and maintain the Ethereum blockchain left, taking their bright minds, vision and drive with them. Even though this was unfortunate, it allowed us to filter out the developers who were only there for financial gains instead of the cause.
The wider Ethereum community did not self-regulate, nor help to safeguard users either. More than 80 percent of ICO projects launched in 2017 have been identified as scams, leaving behind a negative stigma and a highly cautious general public.<//p>
What is most interesting is that with the ICO craze finally cooling off, a growing number of crypto companies are turning to traditional and venture capital financing to provide them with enough runway to make it through the current market spell.
Subscribe to get latest news and updates from SBI. Only important stuff, we promise we won’t spam you.