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What’s Wrong With ICOs?

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As the blockchain community works hard to gain more mainstream appeal, there’s still one main hurdle that they’ve yet to overcome: its Wild West reputation.

This reckless reputation has scared off more conservative investors, and for good reason. The last wave of ICOs was riddled with empty promises and misinformation with nearly 80% of the ICOs in 2017 were outright scams. What’s more, too many of the legitimate projects weren’t practical in that they weren’t designed to solve problems, but rather force blockchain technology into an app which only a handful of users would find useful.

Blockchain Attracts the Wrong People

Barring the obvious scams, there has been too much focus on up-front money. Let’s think about this for a moment. Does a 28-year-old CEO of a blockchain project, with no experience in investing or running a business, really need $20 million in investments to greenlight a project? Quite simply, the answer is no. Unfortunately, this scenario happens time and again promoting, and perhaps even encouraging the Wild West subculture which believes ICOs lead to “Lambos” and five-star hotels.

Naturally, this type of mentality is being heavily associated with ICOs and crypto investing which can drive away traditional investors; the folks who actually have the capital to take blockchain technology to the next level.

Focusing on all the Wrong Things

The blockchain community has been struggling to find direction for some time now. Instead of focusing on creating innovative solutions which solve real-world problems, many start-ups have been trying to attract whales interested in sinking big investments as part of their get-rich-quick strategy.

This leads to a number of problems, including:

    • No real support. Investors are looking to get in on the ground floor and sell when there’s an opportunity to make money.
    • Increased speculation on the strength of the project and its tokens. It’s hard to tell which investors actually believe in the project versus which ones want to make a quick million.
    • No real long-term strategy. Instead of planning a project roadmap, many startups focus on launching their ICOs as quickly as possible to maximize money coming in.

We Need a Better Solution

At the moment, many blockchain projects are struggling to get mainstream support because of the community’s lawless image. We must build credibility to reverse this negative image within the blockchain and crypto communities. Here’s how:

    • Rather than focus on whales looking to buy low and sell high, startups need to attract investors who are interested in the actual technology.
    • There needs to be a greater push to identify and remove scammers from the blockchain community.
    • Projects need to focus on solving real-world problems that average people experience in their day-to-day lives.

One of the biggest barriers blockchain startups face is practicality. Too many projects are providing services which an average person has no use for. Mainstream blockchain adoption needs more projects like SuchApp, which uses the power of blockchain technology to enhance popular applications like messenger services and e-commerce.

Want to see how we can take blockchain from the Wild West to the modern era? Stick around for our next blog post! In the meantime, have a look at the ICOSuccess website to learn more about creating an ICO campaign that’s perfect for you and your project.

Learn more about how you can use distributed ICOs to grow your platform by visiting the ICO Success website today.

Bitcoin

Stepping off the rollercoaster: Why I’ve fallen out of love with Bitcoin

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The very word Bitcoin has almost become synonymous with that of cryptocurrency. It’s basically just a medium of conducting digital transactions – it’s a virtual currency and one of many. So how has it taken on a definition of its own and asserted itself as a leader in the digital financial ecosystem?

Bitcoin has been crowned king of altcoins, probably because it was one of the earliest and most successful of its kind. The trendsetter has ushered in a wave of cryptocurrencies built on decentralised P2P networks and has inspired a growing number of followers and spinoffs. But is Bitcoin struggling to keep up with the newcomers who have made considerable developments to the stability, security, and usability of the crypto world?

The supporting case for Bitcoin has been a clear one. Its pioneering infrastructure has situated it in a position of dominance in the altcoin realm. Bitcoin has a proven usage case as a store of value. Having existed over 8 years without failure, it has a large lead over most altcoins and has withstood the test of time as younger counterparts join the market. However, it seems to be on a downward slope, or at the very least, not progressing at the speed of the market.

In May this…

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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collateralized debt position
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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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