Many reasons to invest in ICOs in 2018
Jan 02, 2018 Posted / 7128 Views
The year 2017 was quite dramatic and many records were broken in the Blockchain and crypto space. In another breathtaking series of achievements ICOs raise in a fiat currency equivalent of $4 Billion. In fact, the number of flourishing token placements has augmented to a couple of hundreds internationally. However, in 2017 only, the traditional IPOs (Initial Public Offerings) have projected to raise $188.8 Billion in entire 1,624 deals. The statistics were provided E&Y IPO Global trends. According to reports in third quarter solely, 2,645 venture capital dealings constituted to $42 Billion.
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If we compare the data ICOs capital account for less than two percent of global IPO proceeds, however, even this insignificant amplification seems to embrace a significant transformation. In one year only ICOs proceeds have surged almost 40-fold, from $96.3 mln in 2016. In 2014- 2015 the amount was microscopic. More than 180 new ICOs are scheduled to launch in 2018, according to the ICObench listing.
It would be shallow and egotistical to justify the ICO explosion as the fabrication of newly rich crypto-miners who want to contribute their unpredictable and re-assessed digital assets in something productive and also as a method of protecting themselves against market volatility. Some analysts may say that it is actually the case, however, it doesn’t explain the exact scenario. There are in fact some root causes in the success of ICOs.
Let us ponder upon some of the good reasons behind the success of ICOs and you can validate on these points to invest in ICOs in coming years-
ICOs and cryptocurrencies utilize the primary faults of the traditional funding mechanisms. They fetch fairness and parity to projects from underdeveloped topography, sectors, and spaces. However, traditional financing is tilted towards mediators, and certainly not creators. They are developed in a way that it will decrease the risk of intermediary, while the investors will face the risks. However, the crypto spaces completely eliminate the third parties and in more simple words, it takes money to get more money.
Classic venture financing is dependent on the magnitude operations and will not respond successfully to enterprises that live outside international business hubs. It can be witnessed in a day-to-day scenario that many US funds will not even consider financing an enterprise that dwells outside the US. Venture capitalists usually declare a large part of the equity in exchange for the money, so investors, irrespective of their share, deeply persuade the verdict of the founding team, and it is not always for good. The fundamental answer to these problems was crowdfunding platforms. ICOs have just made an additional step towards plummeting the hostility behind crowdfunding, de-mediating it further.
In subsequent year ICOs will contribute more projects to assist the comprehensive community, not restricting itself anymore to the Blockchain support development, payments and contemplative trading. It will succinctly lessen the twirl around essentially financial technology. In 2017, we have already witnessed instances of Blockchain notary public, Blockchain-based real estate investment, loyalty programs, supply chain management, intellectual property rights management and other real-world applications. We will recognize more of that in the new year.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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