Can the Failing ICO Mechanism Turn Things Around?


ICO funding dropped to a 17-month low in September. For most, there was no surprise in that statement, barring perhaps the extent in which the ICO furor had fallen. At its peak, toward the end of last year to January, ICOs were garnering frankly astounding sums of money as investors sniffed around for potentially massive return on investment.

However, the ICO mechanism has come under heavy scrutiny. Basing a company and an idea on nothing more than a blockchain proposition written in a white paper, people flooded to these incredible and apparently world-changing ideas, but starting a company, even with a huge bankroll is not easy, especially with nascent technology.

Can it be turned around?

Lisa Cheng, founder and head of R&D of the Vanbex Group, the parent company of Etherparty, understands that the ICO mechanism is failing, and that its downfall can be attributed to a number of factors.

“There are a lack of projects with real substance, and they fail to deliver on promises,” Cheng states bluntly. “The ICO bubble in 2017 was fuelled by hype and speculation. However, many projects failed to deliver on what they had initially planned. This led to diminishing confidence among ICO investors. The bear market also exacerbated the downfall of ICOs, by saturating capital from the cryptocurrency market...”

Read Full Article