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Return of the ICO
The craze of 2017-2018 seems to be back. What does this mean for Ethereum & Tron?
The crypto winter has been a trying time for many in the blockchain space. During the span of 2017-2018 hundreds of blockchain related projects launched and many new coins and tokens were created usually via ICO crowd-fundraising. There were a few notable projects such as EOS which raised a total of $4.1B and Bancor which raised $153M in a day. Both projects are a bit of an exception as they adhered to their whitepaper, launched a successful coin or token that returned its investment at one point or another. The majority of ICOs were technologically unimpressive, based on hype, and flopped.
The decline in the number of ICOs correlated with the drop in the price of Bitcoin & more importantly Ethereum, which was the primary accepted currency for fundraising in ICOs. The number of active ICOs dropped from 526 in March 2018 to just 158 in January 2019. Many, including top crypto influencers believed that regulation had crushed the ICO market & it would never return to its peak.
Despite the rough market conditions, there were 2 ICOs conducted in February that took the crypto-community by surprise. The 1st was BitTorrent's ICO on the Tron Blockchain and launched on the Binance ICO launchpad. It managed to raise a modest $7M in a matter of days.
As per their description:
BitTorrent, the world's largest blockchain-based application, powered by the people. BitTorrent Speed will enhance the BitTorrent protocol for all users and all torrent clients. BitTorrent (BTT) tokens can be bid in exchange for faster downloads. Tokens will be stored in a built-in wallet and can be exchanged for TRON (TRX) tokens through a decentralized exchange.
Another impressive ICO was Fetch.AI that managed to raise $6M in less than 10 seconds. It is important to note that Fetch.AI was also launched on Binance's launch pad. Their token sale concluded yesterday and raised over 24K in ETH.
As per their description:
Fetch is the world's first adaptive, self-organising 'smart ledger'. Dumb ledgers and 'smart' contracts are slow, costly and unfit for the demands of complex autonomous systems. Fetch is the foundation for a next-generation digital world where Autonomous Economic Agents can perform proactive economic activity, powered by a collective super-intelligence. With unrivalled performance, scalability and a unique Useful Proof of Work system, Fetch delivers the missing critical infrastructure for tomorrow's digital economy
Despite a brief decline, it appears that the market for ICOs and new tokens is far from dead. Should these projects hold onto the funds raised in cryptocurrency, the total funds raised in USD could rival the biggest ICOs of 2017 & 2018. Should the price of Ethereum reach its all-time-high of $1300, the total amount raised would be a whopping $60M. It seems that like cryptocurrencies, ICOs are still around and heading for a resurgence.