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There doesn't seem to be an end to the Initial Coin Offerings.

May 16, 2018 Posted /  3161 Views

There doesn't seem to be an end to the Initial Coin Offerings.

Understanding why the ICOs are yet to emerge.


According to a report submitted by Mangrove Capital, only 204 ICOs were sufficient enough to increase the return by a whopping 1320%. In parallel to this many investment firms along with the banks have exhibited their keen interest in the digital cryptocurrency world. There are almost 55 Crypto specific hedge funds. The initial coin offering has become the most popularly used methods of raising funds for a particular project or company.


An Initial Coin Offering is a digital version of the Initial Public Offering. It is a way of crowdfunding by the utilization of the various cryptocurrency coins available in the market. It has proved to be very helpful for new startups and businesses in order to raise funds for their sustainment and improvement. The Initial Coin Offering system has gained enough popularity much faster and is capable of raising huge amounts of money just within few hours. Its expansion and adoption at such rates have put the financial experts in a dilemma.


Most of the startups have managed to raise almost $2 billion since the beginning of 2017. This is a massive amount of funding despite a huge section of the community completely unknown about the concept. A company named Gnosis, within just 10 minutes of its initiation managed to raise $12 million.


The Initial Coin Offerings have gained a firm spot in the fundraising sector. It has also left behind the venture capital funding. It would be of great help to the companies which apply the blockchain technology.


The various regulatory authorities of the countries have been warning the investors, the higher risk in the market.


During the initial stages in the popularity, the various institutional investors were speculative about it. Gradually everyone became less apprehensive and ICO way of investment was widely adopted. The most basic reason for the investment is a higher margin of the profits than compared to the traditional stock market investment.  


Currently, there are more than thousands of cryptocurrency coins available. Each one of which has got its own applications and implementation methods.


According to another report submitted by the fintech firm, there almost 55 cryptocurrency hedge funds. The former manager of Fortress, Mike Novogratz had announced that he'll donate 500 million dollars in a new cryptocurrency hedge fund.  


The great American financial company Goldman Sachshsç regarded the technology to be a major milestone in history.


The mindset of the millennials can also be used as a reason for the spike in the Initial Coin Offerings. It is very often suggested to consult a professional consultant before investing in any form of initial coin offering in order to stay safe from various kinds of plants that are emerging these days. Even if this particular sector falls under the regulations of the government then the freedom which we experience today will not be the same. The entire Blockchain Technology itself seems to be in the testing phase hence still a number of ICOs in the future are expected to come up. However, once the saturation level is reached there will be only a major 4 to 5 coins ruling the whole of the financial world.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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