“Are ICOs a bubble? “

by HACK Fund Managing Partner Jonathan Nelson

I’ve been getting this question a lot recently, especially since I’ve been speaking at conferences globally on blockchain, crypto and ICOs.

$2B has been invested into ICOs over the past twelve months, which is more than seed-stage venture capital investments over the same time period.

But, the market cap of Bitcoin is worth over $160B, and the value of all crypto currencies combined is over $200B.

Think about that. Only one percent of the crypto market is getting diversified into ICOs. Frankly, I’m surprised it’s not a lot more.

Also, the world is in the middle of one of the longest bull markets ever. We’re due for a market correction.

Finally… Wall Street is only just starting to move money into the ecosystem. $200B is the size of one large hedge fund.

Answer this question: what happens to the price of any cryptocurrency when the US, European or Asian economies go on to recession again?

‘Are ICOs a bubble?’ No one knows.

Follow investing common sense.

This is a high risk investment.
Understand you may lose all your money.
Buy and hold.
Resist the urge to day trade.
Don’t invest more than you can afford to lose.

And, learn about the underlying technologies. They’re kind of amazing.