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
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
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
As a result, the unpredictability and untrustworthiness of the market could be undergoing some major changes
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.