HomeAnswerNotificationsCustomize Feeds
HOMEQUESTION
Why ICOs are not fashionable these days?
$0.04
9 ANSWERS

 

ICO stands for Initial Coin Offerings where an organization gives suitable amount of their coins i.e. tokens as asset in return of investment in their organization.

After the hike in prices of cryptos many ICOs came into existence but most of them has a single motive that is to make hefty money quickly! As bears came out the cryptos projection begins to point downwards and as of now bitcoin is trading at $3800 range. This bearish market is nothing but a test case of this so called crypto market and tradings. 

ICOs scammed many people with their ponzi schemes and earned a lot. At the end they left the grounds and people started panicking over their mistakes and sometimes this defamed other trusted cryptos in the market. ICOs are not safe until and unless you go around and check their origin. When I started with steemit the first thing that I studied is the demand and the reputation of the platform in this virtual world. I checked various reviewing sites and many videos before getting settled here.

After a lot of scams and thefts ICOs became the dark side of this crypto/blockchain world. And people started ignoring or just for the precaution they stick with the ones which are in demand. ICOs has lost its charm during 2018  and with this bearish market they are left with no money to stake-in in any platform or ICOs so not only the security but this bearish market is also responsible for the exit of ICOs.

$2.42
Reply

One word: insecurity. ICOs are not fashionable because they're extremely insecure and vulnerable investors can easily be scammed by buying into some fake ICOs.

I suppose its because the system around it is not strong enough and regulations are a murky ground to walk upon. The main aim of blockchain technology of course is decentralization.

So a lot of shady individuals exploit this fault and serve shady ICOs as a way to rip people off a lot of more money. Some shady ICOs make even millions of dollars.

I know of a story like that. I mean there's a lot of story from people who got scammed from the shady icos but the story I'm talking about is actually one from the perspective of one of the people who pulled off this scam.

He happened to be a friend of a friend of mine whom I always knew was unscrupulous, so it definitely didn't come as a surprise. I wnet there to listen to the story just so I could know how to avoid it and just in what way they go about this business.

I mean of course I know not to buy into any untrusted or shady investments and basically keep myself safe, but there are still some loopholes that these people exploit. So this is what I learnt.

He told me that first they do is set up a coin out of nowhere and they give it a name. They then come up with a use case for it, always making sure it is an exciting one that would pull a lot of people in. And then they even go as far as writing a white paper for this coin, some write very exquisite whitepapers that would make a lawyer proud.

They also build their own websites; elaborate websites. So basically they do everything right that a legitimate coin undergoing its initial coin offering would do. Then they approach investors and ask for them to buy into their coins. Most of these upper echelon investors that they contact would be given a bottom of hundreds of thousands of dollars as their least investment option. And a lot of them actually buys witjin this range.

And then they also approach some lower echelon ones and make as much and milk as many people as they can. And then when the time comes for the distribution--kaput. The investors find out that they've been scammed.

And then the people who pulled off the scam walk way unscathed unidentified and live happily ever after. this is why everyone is always warned when it comes to buying in into ICOs. Sadly a lot of situations like this persist still on an alarming note.

Now you see why ICOs are very not fashionable. You might think you know. But some of these guys are actually highly meticulous and smart. They plan everything ahead and give off an air of remarkable genuineness and ingenuity.

Some may not even pull off the scam in such an obvious way as I mentioned. Some are way more cunny and indirect. And you could go a long while without realizing you've been scammed.

So be careful when you see a coin in its offering stage asking for investments. Make sure you do your research, check the team behind it, if trustwothy and familiar, and cross your fingers and acknowledge your risk.

Cheers and have a nice day.

$2.36
Reply

Because the bubble burst.

It had become a huge fad attracting way too many scammers and shoddy initiative that never got anywhere, with something like 97% being massive financial losers.

And perhaps with and aside from all that, there’s been a reality check that the model may NOT have been the best form of fundraising. MOST were aiming to raise HUGE amounts beyond what was actually needed for startup capital - whereas the lean startup route prioritizing organic growth might actually serve many businesses better.

And perhaps riding the wave of such a trend, which appealed largely to those seeking huge quick profits, was NOT exactly in alignment with the values at heart of many projects positioning themselves to be catalysts of change in a socioeconomic evolution whose cultural values have grown in a much different direction than the capitalistic profit-maximization, which the ICO phenomena was still feeding.

Surely, there are quite a few reasons and answers to the question - these being only a few...

$1.14
Reply

As much as I want to take part in ICOs, I decided to join airdrops. Among many airdrops that I joined, many of them ended up either the project was discontinued or scammed. That's the case that being a potential investor, I preferred not to take part at such, rather invest in established cryptos which apparently has their products already. Since I am new to cryptocurrencies, I should be wise on where to put my money in.

$0.77
Reply

I think one of it is that there are currently too many of them. Initially, maybe there were a few ICOs around and now there are probably thousands. Maybe after some time when many of the ICOs don't work out and the number of new initiatial offerings reduces then everyone would pick up on their interest in ICOs again.

The second and most important thing why ICOs aren't thst fashionable at the moment is because of the dropping and free falling prices of the cryptos. Since the big brother of all cryptos haven't had a chance for its sell off to find a bottom, everyone is just running away and are petrified when they see any new ICOs and what they are about to offer. The lemmings concept. Follow where everyone is heading towards even if it's a cliff down.

It's true what Warren buffet always says, the markets movement in price is determined by human physcology. Not many can really bear the pain of investing those btcs in January and now losing so much of it. I am a firm believer of btc.

Well, I am not interested in new ICOs as I feel that nowadays since many miners cannot recover their cost of building up their farm, it really depends on luck if the company is gonna even breakeven. Imagine investing in a new coin and the company that mines them doesn't make a profit like Bitmain's bitcoin cash.. If the company holds a big portion of the coins and the back bone of the company which is the facility and the mining gpus and electricity collapses. Down goes the new coin into the gallows. That would be a full blow. Btc, Eth and some other coins are safer to invest as their is massive backing. Btc has miners who maintain the operation everywhere.

$0.76
Reply

@Littymumma, In my opinion the Crypto Sphere is in Infant stage and we know that when something is new, that environment can included with the manipulation, influence and fraud. So, Cryptocurrency is an amazing concept but due to many fraud projects and scammy projects makes this space questionable too, so due to lack of believe, nowadays the ICO's becoming less. But in future we will going to see more stability because it takes time.

Wishing you an great day and stay blessed. 🙂

$0.72
Reply

So many of them were fraudulent. The law registers requires them to be registered as securities. Most are not registered and the authorities have cracked down on ICOs around the world.

$0.26
Reply

Most investors are being cautious with ICOns because it seems that most ICOs are only designed to raise fund for the project and make their initiator rich without solving any real problem of economic value and give investors a blueprint of getting back their investment.

Also, the number of ICOns coming into the market on a daily basis is so alarming. This is making ICOs less fashionable these days. I think there should be strict regulations on this. Most icos die before realizing their aim and this is really making investors sceptical about them

$0.25
Reply

Besides the few bad ones that are outright frauds I think that so many ICOs in such a short period of time has caused ICOs to lose their novelty and become over-saturated as a type of investment.

$0.24
Reply