Why the ICO Market is Thriving Despite Over 800 Dead Coins

An in-depth look into why ICOs are surging in popularity despite market problems including over 800 dead coins.

Will McCormick
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Last week, RadarZero reported that over a thousand ICOs have failed over recent years which has left at least 800 dead coins and billions of dollars lost on failed projects in the cryptocurrency market.

From a negative perspective, it's easy to see why ICOs fail since so many are built on false promises or are just blatant scams. According to a report from Bitcoinist, an estimated 20 percent of ICOs are scams.

Bram Cohen, BitTorrent's creator, claims all ICOs are scams until proven otherwise. Despite the rate of dead coins in the market and consumers having a general lack of trust in them, how has the ICO market managed to raise almost $12 billion during the first two quarters of 2018?

Numbers Don't Lie: ICOs Popularity is Surging

According to current statistics from CoinSchedule, over 500 new ICOs were created during the first six months of 2018. In the next few months, the market will have replaced all 800 dead coins that have been reported.

The ICO market is moving so quickly that if you invested in every visible ICO right now, you'd still make over 13 times your original investment regardless of the various schemes and problems which plague the market.

Those numbers don't lie. As for the reason behind the numbers, that could be a result of regulators and institutional investors getting involved at the perfect time. For a market that delivers a 13 percent return on your investment at the moment, why wouldn't you invest in the ICO market?

Could the Recent Surge in Popularity Bring About Major Changes to the ICO Market? 

Major firms like CyberTrust and Venture Capital are seeing the value in the growing market. Zhao Changpeng of Binance recently outlined the many advantages of utilizing ICOs as an alternative fundraising method as well. The popularity of the ICO market and attention from bigger companies in cryptocurrency is making a huge difference in the perception of the market despite dead coins and scams.

As a result, the unpredictability and untrustworthiness of the market could be undergoing some major changes with many countries locking down to hold ICOs to higher standards. For instance, Thailand is requiring ICOs to obtain permission from the Ministry of Finance and is formalizing the process in a manner which is comparable to issuing an equity or debt.

The Vietnamese government is also pushing hard for legislative clarity and regulations in the market and South Korea may legalize ICOs despite banning them back in September. All of these changes should result in the growth of ICOs instead of just capitalizing on the hottest trend in the cryptocurrency market. 800 to 1,000 dead coins is a big number, but it could also be seen as a cost of doing business.

With a business that's booming like ICOs currently are, dead coins shouldn't be a huge concern over the rest of the year.