Are ICOs Dead in 2019?

By Swati Kishore

It’s the New Year, and with the ICO market performing badly last year, it is the right question to ask if ICOs are dead in 2019.

It is interesting to note that a few analysts have already proclaimed the death of the Initial Coin Offering method of crowdfunding!

What the CEO of the merchant bank, Galaxy Digital and the CEO of the capital market company, Digital Currency Group have in common is that they have both sounded the death knell for Initial Coin Offerings in separate statements made around the new year!

If you still do not know what an ICO really is, perhaps you could take some help from our article titled What Is Initial Coin Offering (ICO)?.

Without further ado, let’s decide whether the predictions of the demise of the ICO are true or if they are just an overstatement.

You may also read: Major Differences Between ICOs and IPOs

Are ICOs evolving?

There are experts out there who do not believe in the ICO naysayers. These market observers are of the view that ICOs are simply evolving.

The Publisher of the Bitcoin Market Journal, John Hargrave, said,

“The ICO market is not dead, but changing.”

Interestingly, the data from Google Trends shows that over the past year, the interest for the keyword ‘ICO’ has fallen massively. From a total score of 100, the score for ICO keyword search has only been 10 in the last few months.  

You may also read: Can Bitcoins Be Stolen or Hacked?

Will Security Token Offerings dominate in 2019?

We have discussed the rise of STOs in detail in our article. Do give it a read to gain an understanding of the differences between ICOs and STOs.

As per Hargave, Google Trends data underscores the rising interest in the term ‘STO’.

During the past few months, global interest in Security Token Offering has been close to all-time highs.

Eric Ervin, the Chief Executive Officer of the US-based asset management firm, Blockforce Capital, has said that STOs may be in their nascent stage right now, however, the increased adoption of Blockchain Technology will result in the proliferation of STOs across the globe.

Having faced the heat by investing in many scam projects, crypto investors are now looking to invest in authentic projects by doing more due diligence.

Since STOs promise to provide investors with such credibility, hence, it is only natural that investors will tilt towards this method of crowdfunding.

You may also read: Desktop Wallet

Conclusion  

A combination of factors such as the slump in the crypto markets and the preference for crypto regulations are leading to a lack of interest in ICOs.

While we cannot yet say if 2019 will see the demise of ICOs, however, there is a definite transition towards the more evolved concept of STOs.

As we go through the arduous crypto winter, we can still look forward to the season of spring where we will see increased money flowing into Blockchain projects.

Would that lead to a revival of ICOs? Well, only time will tell, however, increased regulations around cryptos would point in the other direction. If you’re still hopeful about ICOs, you can read our guide titled How to Run a Good Initial Coin Offering Process?

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Swati Kishore

Swati has a keen interest in emerging technologies and she loves to write about them. She loves trance and is also interested in the philosophy of life.

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