Report Confirms ICO Investors Smarter Than Wall Street Think

delivoy54

delivoy54 Follow 5

02-27-2018 10:45PM

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Like 90,000 others, I read the Bitcoin.com report that found 46% of last year's ICOs have already failed. What an eye-opening piece that highlights all the dangers of this young, but promising, space that is unfortunately filled with opportunistic criminals. Granted, there are a couple observations to note.

The article cites $233 million raised among these botched ICOs, or better yet scams. The ICO market raised nearly $3.9 billion last year. Thus, these were mostly the projects that were clearly troubled and most potential buyers were able to see straight through. Unfortunately $233 million is still a lot of money, and it is concerning that nearly 50% of all ICOs from last year fall in this category of failures. Still, the majority of projects that received funding are indeed contributing to the to decentralized Web that so many of us are passionate about.

It is 6%, not 46%

I realize that by saying 46% of ICOs are scams it sounds better than saying 6% of the monies raised by ICOs went to failed ICOs. Both statements are equally true, but one generates 90,000 page views and the other will be lucky to crack 1,000.

Everything in the Bitcoin.com article I agree with. The only exception is that crypto investing in 2018 is riskier than ever. Investors are doing a good job at identifying opportunity against immediate failures. The proof is in the 6% ratio of funds allocated to failed or near dead ICOs. The other 94% is directed at companies, people, and projects who are making contributions the betterment of a decentralized Web, and quite frankly, that's impressive! You can't ask for more.

Who would argue that 94% of the money given to Wall Street goes where it is supposed too? No intelligent person would! And that's a regulated industry we are referring to.

Instead of showing half of ICOs near dead or as failures, maybe this report actually proves that cryptocurrency investors are smarter than regulators and Wall Street believe. When they call us uneducated investors and easily fooled by promotional activity, maybe they should consider that we have been right about Bitcoin, Ethereum, Ripple, Litecoin, and have created an incredible platform for decentralized apps. All while raising capital via ICOs that no government had anything to do with.

Therefore, ICOs in 2018 are not riskier than ever, not for the investors who know what they are doing. The same logic applies to stocks, bonds, or anything else.

Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content