The cryptocurrency industry has been one of the largest growing sectors over the course of the past 12-months, but with any new and exciting sector, failure is always an intricate part of growth and an opportunity to learn somethingm.
A recent article from CNBC News has brought to attention that over 800 cryptocurrencies are now dead in the water and are worth less than 1-cent. How has this happened and is it a positive or negative thing?
During Bitcoin’s bull-run at the back-end of 2017, bitcoin prices catapulted to the lofty heights of USD $20,000, which caused nosebleeds of joy from the crypto fraternity. With much excitement and projections from industry experts that bitcoin could hit USD $50,000 by the end of 2018, everything was seemingly on the up and up. However, since the start of the year, bitcoin has lost 70% off its record high price, which has not been the root cause of the failings of other ICO coins, but has certainly not helped.
Over the past 18-months, there have been more new cryptocurrencies and ICO projects than the 3-years before, combined. Experts are comparing it to the dotcom bubble in 2000 in many ways.
CoinSchedule is a website that tracks the market and the on-goings of new ICO projects, reporting that during 2017, ICOs raised a total of USD 3.8 billion. Although 2018 is only halfway through, the figures have already surpassed past last year’s figure and have currently raised a combined total of USD 11.9 billion in 2018. The growth of the cryptocurrency industry is nothing short of monumental.
With investors speculating on the next ‘big thing’, the ICO marketplace is undergoing a streamlining as such. There are many reasons why we have witnessed the collapse of over 800 coins in such a short space of time. Some of the failed projects were short-term scams, some were labeled as jokes, while others had good intentions but didn’t quite reach their goals and promises to investors that have caused them to capsize dramatically. When you couple this with the competition of the newest and most trusted ICOs currently competing for market space, it is obvious that older coins that have underperformed are now seen as ‘dead’ or ‘dying’ and are now trading well below 1-cent.
Although experts are comparing the Nasdaq’s sharp fall at the turn of the Millennium with the current climate of the crypto markets in the first 6-months of 2018, there is no need to get out the tinfoil-hat and puncture repair kit just yet. The fact that the ICO market has already raised 300% more funds this year when compared to the entirety of 2017, confirms we are still in a very good place.
The cryptocurrency industry and the ICO market might be under pressure from regulators, but the competitive nature of the market means that new ICO projects must have transparent whitepapers and have a real reason for implementation, which is great news for investors and the industry as a whole. Out with the old and in with the new!
Copyright 2017 Falanga Сите права се задржани.
Текстот не смее да се печати или емитува, во целина или во делови без договор со Falanga.