Bitcoin Forum

Imagine having the world’s fastest racing car; you’ve got the keys, you’ve got the license, the registration, the beautiful interior — it’s all there. But here’s the thing, you hardly ever get to drive it - Why? The gas stations don’t accept your money, and the price of gas is in constant flux: one day it’s super cheap, the next it’s worth almost as much as the car itself.

That’s what’s happening to today’s ICOs. They are raising an eye-watering amount of funds (over 1 billion in 2018 alone), but once the funds are in their wallet, it’s incredibly hard to use them in a practical way.

Here are the two critical issues: liquidity and volatility. The former breaks down like this, I raise $1 million in ETH but I can’t use it to pay my rent. The latter, I raise $1 million in ETH but its value could drop drastically in the same afternoon. Now I’m asking myself….

How do I use a store of value (that’s continually fluctuating) to make sure that my two kids have their school fees paid?

Read the whole article: https://medium.com/@globcoin_io/what-can-icos-learn-from-the-electrification-of-cars-326ee5a63139

Ethereum isn't a store of value and any ICO that accepts Ethereum should be well aware of all the risks that come with it. With that said I think most ICOs hold on to their ETH because most believe it will be worth more in the future.

Yes you are right today some coin of an ICO is only worth a can day but when they reach their selling point and have big output then the price is now worth as a house, at the same week the price  can become worth of a pancake, that's why traders have the best position and nice job to keep the coins value every moment to look for best time to buy and sell your coins, I think you can do this for your two kids future.

This is a very dangerous game you are thinking about. Never depend or even think about depending anyone’s future in crypto at least not yet. The governments couldnt accept the cact that everyone could be rich.. this year we’ll experience heavy regulations towards every edge of our world. So just watch put and hold the money you are happy losing

This is the stage that we would need to work out and embrace the reality. Many of the developers has abandoned the projects and they are now using the investors money to enjoyed life with their families. I think it is good government should regulate this in other for us to really have value for our investment.

I agree with you, there are too many scam ICO and I hope that in the near future regulators are going to do something about it. I see many ICO with lots of money and they do nothing, no development and no exchange listing

It was abundantly clear that scammers were taking advantage of the hot market and newbie investors and pedling off their rubbish projects as the next best thing. This caused big changes in the real world (KYC, etc.) making it harder for genuine projects and generally more expensive and less rewarding.

Just check out the solid ICOs (forget about the obvious scams, these are expected in such decentralised techs) with a great team, promising and solid tech.
For example Multiversum, which will add sharding to the traditional blockchain to increase fault tolerance among other benefits.
To me, ETH is the chain with the best investors, team and tech, even with the scaling issues. But this year you will see that other coin ICOs will come out as well challenging this position, making the ICO ecosystem even richer.

The market is still immature and volumes are significantly low comparing to traditional financial markets. Crypto currency area has still time to develop. It doesn't happen magically from today to tomorrow. I mostly agree with the article and add that, we should be patient. It will grow in time.

Certainly will, I'm sure most of the people around crypto knows how to deal with waiting game, investment yet using also the service as payments
currency will be adopted after more countries accept the existence of this chain, we will keep seeing the volatility market and I guess until the time
everything was settled and adoptions cater each project inside the market, then possibility that every quality ico will succeed.

 In my personal opinion, scam ICO projects are becoming more and more popular in the crypto market. Those who do signature campaigns like us are experiencing a lot of disadvantages. It seems that the ICO is increasingly being exploited and is going down. The future of the ICO and we are really very blind. We can not do anything to help the bounty community. We need solutions from ICO founders.

The more scams ICO projects are and we can not find potential projects. I was a signature campaign person and I was scammed a lot. Current status is still no improvement. I am really worried about the ICO and I hope that in the future they will offer better and fairer solutions to fraudulent investors.

Mostly ICO's now are scam.. On their first launch you cannot see that they are scammers or fraud, but when the ICO near to end thats the time they will disppear!

I agree with all of you, goverments need to do something about ICO's.. Nearly %80 of new ICO's goes on the bad way and everyone loosing their Money.. I think it's a big problem and it will get bigger..

Yes you are right icos are facing hogh volatility issues, couple months back icos like envion raised big amount of funds but eth was trading at all time high of $1400, i hope they cashed out on daily basis otherwise they must be 70% down from ico funds due to big eth correction after their ico.

Immediately after the ico they should exchange their ethereum for usd as a way to reduce risk because ethereum is really not a store of value.

there are too many scams which just aim to collect money and do nothing, and the whole market is falling these days which lead to new coin price lower than ico price after listing on exchanges, so few people participate in ico now

for me because of the volatility of crypto currencies, i tried converting 20% of my profit from previous investment to fiat to be sure that if ever the prices go down i still have something in my pocket to use in my daily needs. same as using this 20% to reinvest if ever the prices goes in a dip.

I'm staying away from literally every ICO. Too many scams and most ICOs get lazy after they get their money and don't work hard enough on development.  I would stick to fair distribution projects or proven cryptos.

It's true that ICO's are facing hard time to cash-out the funds.

But according to their WP, most of the ICO's need to cash small amounts on some periods. Like to cover development cost, marketing, etc. They don't need to cash 10K ETH at once. Also, I think it's wrong constantly to look after USD value. Crypto projects are selling crypto tokens for crypto coins.

 I think the market for ICO's is still there and will continue to grow over the next year, One ICO that has really set an example in the space is the Effect.AI ICO. It has alot of hype around it, but apart from the hype it has alot of real innovation behind it as well. I am basing my deciison on that. The mechanical turk will be a great benefit in teh space to collect AI data and incentivize users at the same time. looking forward to this project, check it out if your interested. The ICO begins on the 24th of March, just 3 days away.

ICO's are not profitable nowadays at all. because off this bearish market nobody wants to collect and hold new coins. that is why mostly it is better to buy them whenever they are listed. Ofcourse there are a few strong icos that investors could make good profit such as credits and tomo.

This is a bad time for the ICO. because the market always shed blood. And investors do not want to risk their money. It takes a long time for the ICO to emerge as much as December 2017

Majority of ICOs do not worth to invest during "ICO phase" recently due to deliberate initial overpricing, weak products in a majority of cases and other reasons. Even good ICOs these months regularly fall below its initial ICO price, even with bonuses, after exchanges' listing because of BTC volatility and buyers' panick mood. It is much simpler (taking in consideration KYC procedures) and more profitable to buy recent ICOs after their listing. But after beginning of stable BTC bull market the situation will change for better for sure.

In the current situation, I prefer not to participate in ico, but buy tokens after listing on exchanges. There are chances to buy cheaper than ico prices.

That's quite a chance you're taking. However, considering the current market conditions, it's one that works

Very accurate statement in my opinion. I am trying my best to invest icos and I see very cool, high level icos but most of them just cannot use their funds and send them away to community with airdrops so on. They waste funds on promotions.

I agree and many ICOs are accepting BTC and even USD or other fiats.

The other way around is that when the market is on the bullish run staying their funds with cryptocurrency would cause a huge gain, not just with their own projects and fundings, it will be a domino effect both for their investors and supporters but the OP has a valid point and most of the projects have the kind of risk which was mentioned above

Some people preferred to buy during the presale and that is because the project offers huge discounts and promo's but in some cases, it is much better to buy tokens when it hits exchanges, you will experience better discounts rather than to accept presale offers.

The problem now is that people are not confident putting their fund in ICOs again, I have invested into more than 4 ICOs recently that their price started dumping the day they hit the exchange which is a big concern to me, why do you invest in a project when you are going to sell it at half the price you bought it and these are not projects that have bounty program, e.g. Insight Network and Bee tokens

I think this is a better way to avoid ico scam. although we do not get a bonus tier. at least we will not lose the funds

I agree too.

ICOs are basically taking our moneys and feeding us BS at the end of the day. Nothing to show for it.

90% of the ICOs have no integrity.

We need regulations, really we do.

Its called bubble but it is not confirmed that it is bubble. We dont know about what exact number of liquidity. In any econimoc instrument if all people liquidate it of course not enough money for it. We just need more adoption so we can be more usefull and ont have to worry about it. The crypto currencies is way too far from bursting. As the money flow in we will able to use it anywhere. Just pations. But i also dont agree with ico which collected so much fund they collected money more then what they needed.

All as always, simple ideas are almost over. complex ideas to realize almost impossible. Therefore, the new ICO on the market almost no:(         

In view of the unstable dynamics, many projects will likely try to ride out this red period and come out when crypto market will be more stable.

So many projects started to come out in the same style. A multi-chain and two artificial intelligence. It's hard to predict which one will win.

Rightnow choosing the right ico is very hard, because there are so many ICO rising.
So before i join or invest in that ICO i always check first if that ICO is goo or has potential. I always read all the information like its whitepaper, road map and etc. And i always also try to join in a ICO with trusted member and dev. Because some of them are very successful.

they'll have its ups and downs. As long as its a good project with a loyal team, everything should be fine.

Ico's were an advancement in the crowd funding process, as ethereum keeps on decreasing in value the ICO value too keeps falling. Right now we need something good as the last year's Japan acceptance of cryptocurrency to experience good growth with the ico's.

As there is an unstable situation on the market, some projects cancel the ICO's. When the situation on the market stabilizes, I think that a new wave of ICO's will begin. Large investors are waiting for ICO's regulation

I agree with you that this time it is a lot of ico scam,One way to avoid getting stuck on ICO scam is to review the ICO, one of the examples of websites reviewing ICO is icoreview.site, this site became the mainstay of ICO hunters before deciding to follow the ICO program of interest. In addition to knowing the recommended ICO, here we can also find out the list of ICO's SCAM.

I also agree with you that after the market recover and the price of bitcoin begin to rise, icos will also begin to take a new turn and investors will show more interest in them.