Crypto Coins: The Research: Are ICOs (Initial Coin Offerings) still good investments?

  • Monday, 19 March 2018 15:34
The Research: Are ICOs (Initial Coin Offerings) still good investments? In the past ICO (Initial Coin Offerings) used to offer great ROI (Return of Investment) though 2016 and 2017 - it was one of the best ways to generate quick profit: Because of that ICOs were getting more - people saw them as a no-brainer opportunity to increase their crypto holdings since you could usually sell your ICO tokens straight away after investing for very nice profit. This lead to companies seeing the ICOs as the best way to raise funds meaning more ICOs are being created every day. The main advantage of ICOs over traditional crowdfunding is less regulations so the companies can raise funds much easier. Situation changing More and more ICOs were being introduced which means more cryptocurrencies were being created as well. Checking ICO listing website proves that the amount of new ICOs being introduced nowadays is absolutely insane with hundreds of ICOs appearing weekly. If we look at the recent returns of different ICOs we can see that the results were very bad with investors actually losing money in most of the ICOs. Why are ICOs doing badly? There are several reasons for the poor performance for most of the ICOs: Market oversaturation: due to high number of new ICOs it is way difficult for ICOs to stand out so the demand for tokens is lower once they are on exchanges - people simply have too many investment opportunities Less original ideas: a lot of ICOs are duplicating something that already exists so those projects are viewed as worse copycats Bearish market: the market is doing badly overall so people prefer to hold safer assets like Bitcoin, Ethereum or NEO Poor performance: poor performance of ICOs means that many people feel that ICOs are less profitable and don't invest in them meaning there is less demand for the tokens Greediness: a lot of ICOs have terrible token economics because developers are greedy so it's difficult to generate returns A lot of scams: plenty of ICOs are pure scams so investors are careful when investing into ICOs Forced blockchain/crypto usage: in many cases the usage of blockchain and crypto just doesn't make sense - those tokens will not gain in value Solution? Because of all of these problems investing into ICOs simply doesn't pay anymore and you would be much better holding ETH instead. Be very picky when investing. There will still be ICOs that might perform good but those will be only the top ones, some of the recent ones include Arcblock, TomoChain, Credits, Elastos, Zilliqa, Bluzelle and Bee. All of those projects are platforms, protocols or blockchains - it does seem that projects used as a baseline for other projects are doing well. Most of them were also hyped and had a reasonable hard caps. This is probably because those projects will always have other solutions built on top of them which should ensure demand. Should you bother? Because market is very bearish at the moment investing into ICOs need to be considered high risk, keep in mind that this could change quickly if the market turns bullish again. In bullish market even bad ICOs were doing really well Currently it will probably be more profitable to hold Ethereum but if you can find ICO fitting these guidelines investing might be worth it: some type of platform/protocol/blockchain, a lot of hype, plenty of social media activity, reasonable hard cap and good token economics in general. Keep in mind that this is for flipping. Follow me on social media: Telegram: https://t.me/crypto0coins Twitter: https://twitter.com/Crypto0Coins Facebook: https://www.facebook.com/crypt0coins/ Steemit: https://steemit.com/@dmae You can also use my referrals: Coss referral: https://sso.coss.io/api/invite/XJZ89O9XRU Binance referral: https://www.binance.com/?ref=10136785 Coinbase referral: https://www.coinbase.com/join/580f4ae28bfa31697d9a8f7c I no longer accept donations! Love you but keep in mind that this is not a financial advice!

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