The hype of ICOs in 2017 was a bubble and will never come back

Do you still remember 2017? It was the year that ICOs (Initial Coin Offerings) shot up like mushrooms. Every crypto project was made of gold and yielded ridiculously high returns. Even the ironically intended Useless Ethereum Token was invested.

But those times are over and never come back. That is, if we have to believe crypto-analyst Larry Cermak. He analyzes data from the cryptomarket for news website TheBlockCrypto. In several Twitter messages, he explains why he thinks ICOs are a thing of the past.

What are ICOs?

With an ICO you are one of the first to have a new crypto coin or token. These tokens are often linked to an ambitious blockchain project. However, caution is required, not all blockchain projects achieve their goals.

Almost every ICO ultimately resulted in a loss

Did you invest in an ICO in 2017? Then that yielded an enormous amount of return. The price of a random token often went upside down several times. But that time seems to be over.

If you look at the prices of these tokens now, they have had to surrender an average of 87 percent in value against the dollar:

Another striking detail: only 10.8 percent of all ICO tokens are still profitable in dollars.

And compared to bitcoin, ICO tokens had to surrender 91 percent in value. Practice ..

Data is difficult to gauge

Exactly how much money in dollars has been raised is difficult to gauge. In fact, many ICOs took place in 2017 and in much of 2018.

According to the lowest estimate, from 2017 up to and including now, 14 billion dollars in funds have been raised by ICOs. The highest estimate comes from ICObench. According to ICObench, 5,600 ICOs collectively raised $ 64.6 billion.

Will IEOs become the new ICOs?

ICOs are therefore “completely 2017”. But how is money raised with cryptocurrency? That is now mainly IEOs. An IEO means that a crypto coin appears on an exchange for the first time. IEOs are now very popular with the Binance crypto exchange.

An example of an IEO is Elrond (ERD), which is a token that was added to Binance’s range at the end of June.