Main ICO Trends
What’s going on?
The ICO market was overloaded with projects last year. New young cryptocurrency companies appeared on the market everyday and made billions of dollars. The conditions for ICO projects were perfect and new investors kept joining the market. It made sense since it was a new financial tool that was not regulated at all.
So what happened?
This new investment opportunity was recognized by the financial world and the most attractive part is everyone could you use. Anyone who had a new idea could create a token, spread it in the community and get financial support from investors.
The expectations were great and everyone thought that 2018 is going to bloom with new projects and ICOs. And indeed the first couple of month of 2018 were quite promising. The cryptocurrency market was growing along with the most token prices. The ICO market capitalization has reached $6.3 billion within the first quarter of 2018. Back then an investor could get 10 times more than what he had invested before.
However, a lot has changed in the next 6 months. The ICO trend has changed and the majority of public ICO became private. Their sales were limited and only accredited investors could participate in it.
What about now?
Regardless all that, the ICO market still shows a positive trend. The average ICO size has nearly doubled from $15.98 million in 2017 to $31.08 million this year. The most significant change in the ICO market is who is participating. In 2017, the ICO market was dominated by independent, mom-and-pop investors; the conversation centered around financially empowering individuals who would not have had the necessary capital to participate in IPOs or other kinds of investing.
Nowadays, however, «ICOs have become vehicles for accredited investors to make bets in the market for blockchain and cryptocurrency startups,» Investopedia reported. (In this context, ‘accredited’ should be read as ‘wealthy.’)
A lot of major cryptocurrency projects has become private, for example, Pavel Durov’s ICO, Telegram founder.
Right now the ICO market is studied by the regulators. The official government institutions are taking actions towards ICO projects and cryptocurrency regulations.
Since the ICO market became more «private», the leading projects now are no longer independent but institutional and they closely follow the rules of the regulators.