In today’s article, we will look at how the market for cryptocurrencies and especially ICO coins has changed and shaped from 2016 to the present.
What Is An ICO?
An initial coin offering (ICO) or initial currency offering is one of the financing methods for start-up cryptocurrency companies. Many times it is a form of crowdfunding where investments are canpossible for both the private and public sectors.
ICO can also be called startup projects looking for capital before the project started, the ICO market made it very easy to get investment from ordinary people and companies could avoid the complicated regulations and controls that accompany financing from banks and licensed financial companies.
However, this method of raising the capital of ICO companies has, in many cases, had a loss-making result for investors, which continues to this day, and many of these companies have never brought a real product into real use.
Take a look at how ICO coins offers have evolved over the years 2016-2020
As you can see ICO products have experienced a big boom and in 2017-2018 there was a lot of investors interest in them. Most of these companies were formed in time when BTC and cryptocurrencies were experiencing great fame and prices reached their historical highs.
What is sad most of these ICOs ultimately did not even have a real product and arose only from a speculative perspective when they saw a growing community interested in this kind of investment. For these reasons, many regulations and even bans on products ICOs have emerged in lot of countries.
Looking at the year 2018 when was the largest ICO coin offer, we can see a value of $ 7673.97 M, currently in 2020 it’s $ 4.07 M this is an incredible 99.94696% drop in supply.
This statistic, offered by the token-economy, yields only one result, and this is a gradually moribund dying market with new ICO offers.
Finally, the cryptocurrencies market has at least cleared itself of the often very attractive investment opportunities that ultimately had fatal consequences for investors.
If you are still looking for the right investment, we definitely recommend a security token offering (STO).
A security token offering (STO)/Tokenized IPO is a type of public offering in which tokenized digital securities, known as security tokens, are sold in cryptocurrency exchanges. Tokens can be used to trade real financial assets such as equities and fixed income, and use a blockchain virtual ledger system to store and validate token transactions./wiki
