This year alone has seen over 200 startup firms raise more than $3.2 Billion worldwide through ICOs. The funds raised are more than the funds raised by venture capitalists. Truly, dependence on Wall Street for investment is gradually coming to an end.
Startups’ journey so far
2015 is the year that ICO started becoming something to be reckoned with. That was when Ethereum raised over $18 million through ICO, thereby solidifying its foundation as a cryptocurrency.
ICOs do not need a level of understanding with the investors to take off nor does it require that a product must be ready before the investors can put their money to it.
These advantages made it very easy for entrepreneurs to opt for it as they start their companies. Although there are some security risks, like scams, government policies and taxation, still the rise of these cryptocurrencies and the way they thrive goes a long way to show that ICOs have come to stay.
Now, a higher number of investors are ready to start investing in cryptocurrency. But what could be done about the risks of ICOs? Habour co-founder and chief strategist, Dylan Dewdned said:
“Scams, while not rampant, are out there, and they tarnish the image of all ICOs. To combat this, our ICO is also creating a rating system and proof of verification system”.
What to Expect in 2018
According to WalletInvestor, ICO esteems will crash more that 5,600 percent between January and July, finishing midyear with zero esteem.
Will the foretold crash put an end to ICOs in 2018? The answer is No!
Ethereum’s founder, Vitalik Buterin, strongly believes that 90% of current ICO projects will crash. This will in turn lead to the emergence of superior ones that will not only be genuine but will eliminiates people’s fears in ICOs.
ICOs will continue to grow but in regulated marketplaces. It will revolutionize the world of digital investment even more than it has already.