Is There Still Hope for the ICO Market To Bounce Back ?

Is There Still Hope for Initial Coin Offerings (ICO) ?

ICO’s were a hit last year, with million dollar companies raising over billions of dollars with it in cryptocurrency-based funding. The conditions which surrounded ICO’s last year were so favorable that investors kept pouring in.
A new profitable investment, with no regulation to tie down its progress, was warmly received across the finance world, and to top it up, almost anyone was welcomed on board. Anyone who had an idea could float some tokens and invite investors to invest in them.
Moreover, with its investment wheel being a distributed platform which connects all sellers and buyers, it couldn’t be any more perfect.  Small business and institutions including churches, schools, could all raise money through ICOS’s.
With how things had taken place, a brighter 2018 was seen in the picture, and the early stages lived up to expectation. The crypto market at the beginning of the year was booming, with prices of the most significant coins flying high.
This surge had an immediate impact on ICO trading, with funding hitting $6.3 billion in the first three months only, a figure much higher than what it achieved the whole of last year, which was $5.5. Profits were flowing in massive amounts, with a 10-times return becoming the minimum standard for investors who were in bed with ICO trading.
The next six months would, however, turn sour for the ICO business. The trend of the trending has changed and now Public ICO’s which at first was open for all individuals to invest, has now turned into private, limited sales which are also available for accredited investors only.
Even though on the outside, the ICO market looks to be growing with reports suggesting that, the average ICO size has gone up from $15.98 million in 2017 to $31.08 million this year. The problem, however, is the participants.
Because many ICOs have scrapped out the public sale component, retail and independent investors are now being made to wait until a token gets listed on an exchange.
The ICO market is now favoring wealthy investors whiles the less unfortunate ones remain on the sidelines. Most of this year’s largest ICO’s have only be opened to private investors, and from the look of things, the trend is set to remain the same.
Regulatory issues have been the primary reason for this change in ICO trading as governments are intensifying their rules on cryptocurrencies. With scrutiny intensifying, many startups, have resorted to raising money from private investors, which substantial digital assets as that’s easier and simpler and this is driving away independent and retail investors, who once dominated the business.