Are ICOs still a hot commodity?
Initial coin offers (ICOs) are the cryptocurrency version of a crowd fundraiser, and they are becoming increasingly popular. However, a veteran in the cryptocurrency game, Brian Kelly, recently told CNBC that he is not very optimistic when it comes to ICOs.
At least, he does not believe that seasoned investors are as eager as the younger investors to throw money at the ICO market. According to him, even investors who have already put money into several ICOs are now saying that enough is enough.
Kelly points out that after investing in five or six ICOs, savvy investors will want to wait and see if the projects come to fruition before investing in other ICOs. In other words, ICOs is not as popular as they used to be, according to Kelly.
The figures tell a different story
This seems like a strange statement when you look at the figures. We are in the middle of 2018, and already 300 ICOs have been launched. That is more or less how many ICOs launched all of last year.
The figures would thus suggest that ICOs are today twice as popular as they were last year. Not only have more ICOs launched this year than last, but the amount of money raised from these ICOs are greater than the amount the 2017 ICOs yielded.
For example, the social entertainment platform TaTaTu managed to rake in $575 million from their ICO. As we have discussed earlier on this site, Akon is launching his AKoin, and will undoubtedly seek funding through an ICO.
ICOs more popular in Asia than the US
It could be that Brian Kelly is right, at least in part. After all, he is the head of an investment firm that specializes in cryptocurrencies. He points out that the United States is no longer a leader in the world of ICOs, and that is mainly down to the newly imposed regulations from the US government.
In Asia, where regulations are nowhere near as strong as they are in the US (except for South Korea and China), ICOs are flourishing more than ever before. When looking at the many new regulations being imposed all over the world, however, this could very well change in the near future.
More changes in the ICO space
Kelly also points to another major change that is happening in the ICO space. Where previously ICOs sourced their funding through fiat money, US dollars more specifically, more and more are beginning to receive their funding in cryptocurrency.
Finally, Kelly mentions that the investors who still have an interest in blockchain technology projects are turning to the underlying platforms that the various ICOs are built on.
This means more are investing in Ethereum and Bitcoin. Perhaps the renewed interest in the underlying technologies will lead to a spike in the value of Bitcoin. Currently, the famed cryptocurrency has been standing still at around $6,700 per coin, which stands in stark contrast to its nearly $20,000 all-time high in December 2017.