Despite the slow start and bearish sentiment of the cryptocurrency market this year, apparently ICOs have been going strong. Various reasons are plentiful for why the ICO market remains this strong and it has me scratching my head.
Some say that serial investors are cashing out and then reinvesting into new ICOs. Others say new investors from outside the traditional cryptocurrency world are coming into the market.
I am not sure what to think, as someone like myself is shying aware from most ICOs based on my experience that I feel 99% of these are scams and won’t ever deliver anything. I think most of them are the next dot bombs and it is absolutely right to panic and sell these worthless Ethereum ERC20 tokens.
In ICOs the traditional due diligence is simply not enough. It is easy to weed out people without IT or business experience. And from that you have to weed out who has valid experience and qualifications? Working for big name companies does not make you qualified to deliver on an overly ambitious project, but it does of course help attract investors. I’ve seen enough big names including the Telegram ICO to be unimpressed (the Telegram ICO tells you to send money and then e-mail them to confirm the transaction……..how on earth will they build a proper blockchain if they can’t make their own API for transactions?).
Sorry for the rant but seriously what is driving the ICO market despite all the bad news? I suspect it is people in the cryptocurrency world and I suspect they are miners who are thinking “my coins aren’t worth that much at the moment why not invest some of my spare ones into ABC scam ICO in the hopes that it grows and acts as a hedge to my underperforming cryptocurrency”.
That’s the best I can do and I suspect that is what is happening. There are of course the institutional and whale investors who play a role but it’s unclear to what extent.