Updated: Sep 7, 2019
Initial coin offerings” (ICO's), as a new funding mechanism based on cryptocurrencies, have raised hundreds of millions this year, outpacing traditional funding mechanisms like venture capital for new technology projects. According to a new report from trade publication CoinDesk, ICO's raised $797 million in the second quarter of this year for blockchain businesses, compared to the $235 million that blockchain projects have raised from venture funding.
ICO's are helping many startups to raise the funds they need for their projects. With an ICO, startups one can easily raise a large amount of money within a short time frame of just a few seconds or minutes. Entrepreneurs will continue to take advantage of ICO's to raise capitals until it comes under government regulation. It has been predicted that over $4 billion worth of token sales will be conducted in 2019. Certainly, and despite some negative press, ICO's are not going anymore. The next crypto wide pump will bring back a very heated ICO market. We continue to advise our followers to exercise caution. Very savvy projects are excelling at the "pay to play" marketing level, compiling some name recognition on the team to tout the project, with lavish payouts and bounty programs, at the end of the day, the strength lies in case-use/tech/and dynamics. Continue keeping your eyes open for solid new projects (we constantly analysis and grade projects, so feel free to drop us a line if you have a Q) and most importantly, be careful out there!