In 2015 there was a smaller market for ICOs, where a million dollar sale was a rarity. However, with the recent surge of funds being raised from ICO projects it is no wonder why it has attracted developers and entrepreneurs from around the world. Allowing project developers to gather funds without resorting to a bank makes the process simple and this shows as there is at least 3 new ICOs created every week.
The ICO trend has already gone mainstream in the sense that they have broken out into the wider startup space where network effects are a requirement. Also, many mainstream companies may end up bringing ICOs into the spotlight by making cryptocurrency and blockchain technology known on a global basis.
Although ICOs are attracting mainstream audiences, there are some difficulties: as bitcoin and ICOs are pushed further into society, the rules surrounding them are still being written. Even though mainstream investors are gaining exposure to ICOs, most of them are not taking advantage of it. Stats show that only 15% of those in America would invest in an ICO, whereas more than half said they wouldn't.
The Future of ICOs
Although some ICOs have bad reputations and therefore had a negative impact in some people's’ minds, this new type of fundraising mechanism can be the answer to cryptocurrency and blockchain mass adoption. As regulation continues to evolve, throughout the future, ICOs could become very different and serve multiple purposes. There is a chance they could replace IPOs and make a fairer and equally distributed economy, where anyone can become an investor. The tokenisation of capital which provides new levels of liquidity and transparency are the future. Mature startups and larger existing businesses may begin to explore the ICO space now and in the future.
As with any form of investment, ICOs do come with an element of risk. Therefore, if you are considering launching a project of your own or investing in an existing one, it’s important to speak to a specialist so that you feel confident an ICO is the right move for you.
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