Market Trends on Token Sales in 2017–2018
2017 was a landmark year, as it was once in 2008. Only if 2008 was remembered by the financial crisis, then 2017 will be remembered by the phenomenon of ICOs and the blossoming of cryptocurrencies.
The key question that interests market participants is how the factors that influence the success of the ICO have changed. And it would be nice to understand what a successful ICO is.
Success for an ICO is raising a lot of money. Of course, this is only the first step towards creating a cool product and satisfying the investor’s interest. However, there can be no future for even a successful project without proper security in the form of hedging as the proverbial “business sharks” are coming to the market and do not care about the viability of products, only pumping and dumping tactics for their own enrichment. DeHedge is a project designed specifically and endowed with official US regulations for hedging viable project tokens.
ICOs currently have a lot of issues attributed to them — legal issues, regulations, financing, scams, and many more. With every year the issues will snowball as the market grows. It is impossible to securitize the entire market or industry just reduce the risks through proper hedging.
The market is growing, but the growth has slowed to November rates and has been growing by a couple of per cent per month since. The number of projects continued to grow at a tremendous pace, though. December saw a spike in the collected sums, possible reasons of which are the desire of most projects to complete their ICOs by the end of the year and abnormal charges for Hdac (258M) and Sirin Labs (158M) projects, which accounted for 25% of all funds collected in December
In January there was a seasonal decline as the majority of teams rested and celebrated, and who really wanted to work held their token sale back in December. In general, the situation on the market resembles a sale on a Black Friday with a huge number of projects, all wanting investments. As a result, the average amount of fees for an ICO dropped almost threefold in mid-summer.
The number of projects on the market is growing rapidly, but the amount of money is not. The importance of small investors has declined, large investors and crypto funds have grown and their significance has also changed under the pressure of external factors.
