The current market for initial coin offering (ICO) is considerably larger and more significant than in 2017, despite the drastic change in the cryptocurrency space during the last twenty-four months. The ICO market is currently over 70 percent higher than in 2017, although the bear market has influenced crypto prices and ICOs have been halted by regulators around the world.
Current ICO market still significant
The ICO market has struggled over the past few months due to the bear market and the clampdown by regulators across the globe. However, ICOs continue to serve as a source of innovation and intrigue in the crypto industry.
The market has dropped significantly from the highs experienced last year. However, a new data published by Crypto Analytics site CoinSchedule showed that ICO investments in January 2019 were 72 percent higher than in April 2017. The data reveals a substantial growth over that period, despite the decline in cryptocurrency prices.
The figures for January 2019 were poor compared to June 2018; 291 million USD compared to 5.8 billion USD. At the beginning of 2018, prices for top cryptos fell sharply. However, developers and entrepreneurs in the sector were still operating from the excitement of Bitcoin’s 2017 bull run. Despite the decline in coin prices, the ICO market performed excellently throughout most of last year, resulting in high demand for Ethereum as the preferred currency for ERC-based projects.
With the bear market still affecting the crypto prices, the ICO market became a vast demand that accomplished little in 2018. Most of the new coins were met by investors with skepticism and concern about the occurrence of scams in the sector. According to some reports, the ICO marketplace accounted for over 80 percent of scam projects in the crypto space over the last two years, with researchers discovering that investors reap the most return by selling ICO tokens immediately after being issued.
ICOs have been plagued with controversies over the past few months but remain one of the best innovations in the financial landscape. When compared to traditional startup and company founding paths, ICOs enable small startups to develop and market coins with speedy turnarounds regardless of the outcome. Coin projects can launch and develop projects faster than their traditional counterparts but at the expense of quality and regulatory concerns.
The ICO landscape has changed over the past few months. Previously, the United States and its Silicon Valley dominated the market, but Switzerland has emerged as the leading country in terms of coin projects. According to data published by ICOBench, ICOs raised less money in the fourth quarter of 2018 compared to the third quarter. However, the number of completed coin projects was higher in the fourth quarter. ICOBench attributes the increase in success rate to a change in the industry since projects are no longer completely price-driven.