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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

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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