Remember when it seemed like there was a new ICO launching every day? Back in 2017 and early 2018, when the markets were flooded with money and everyone was riding the cryptocurrency wave.
We learned a lot back then. We discovered that…
- Bull markets don’t last forever
- Not every “revolutionary” blockchain project lives up to the hype
- ICOs are an incredibly risky investment
All it took was a bear cycle to kill the crypto euphoria. Suddenly, fewer investors were willing to back blockchain projects. This led to fewer ICOs being launched, which isn’t necessarily a bad thing, depending how you look at it. After all, ICO season attracted a lot of scammers pretending to be blockchain startups with the intention of taking investor money and disappearing.
It seems like ICOs were never able to fully recover from that.
What’s the Current State of Blockchain and ICOs?
With the market down 97% of what it was a year ago, it’s safe to say that things aren’t looking good for ICOs. But why?
There are a number of reasons why ICOs are failing. While the 2018 bear market played a role in this decline, poor business management, lack of financial transparency, and the prevalence of scammers also played a role in driving away potential investors. And it’s important to note that the lack of ICOs doesn’t mean that cryptocurrency is also in decline, because security token offerings (STOs) are quickly gaining traction in the industry.
With that said, none of this means ICOs are going the way of dinosaurs, DVD players, and flip phones. They’re not extinct yet! They just need to be reworked to meet the needs of an ever-changing industry. And one way this is happening is through Distributed ICOs.
The Distributed ICO is an ICO that holds blockchain startups accountable for their actions while keeping investors protected against scams and mismanagement. This is done through smart contracts which regulate the amount of money startups can receive, as well as how those companies spend their money. Let’s look at the key points of how the Distributed ICO works:
- Startups can only raise enough money to meet their goals for that period
- Funds are only released to the company when investors agree with the project’s roadmap
- If the company doesn’t meet their target goals, investors vote to decide whether the project should continue. If they vote no, the money is returned to investors and the ICO is canceled.
See the difference between Distributed ICOs and traditional ones?
The Distributed ICO puts measures in place to protect investors from scammers, while ensuring that the company’s goals are constantly aligned with the goals of the investor.
Want to learn more about Distributed ICOs? Visit ICOSuccess.com. As the leading company in blockchain-marketing and management, ICOSuccess has helped a number of successful blockchain startups with their ICO, marketing, and business strategies.
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