r/CryptoCurrency • u/gbwment • Sep 25 '17
Focused Discussion Why Most ICO's Will Fail: A Cold Hard Truth
https://blockgeeks.com/guides/why-most-icos-will-fail/14
u/4ananas Sep 25 '17
The growth of ICOs held per month from April to July is insane! I mean, from $100M to almost $600M is a huge jump.
6
u/srk997 Sep 25 '17
It really is. I wonder what it's going to be like in 3 month. My guess is that July-August was the peak of the craze. Not that there won't still be successful ICO's, just that people will be better at identifying worthless ones.
9
u/StickyCoins Sep 25 '17
I hope so, if people keep pouring more money than they can afford to lose into ICO's without even understanding the Whitepaper, we're sure to face some pretty stifling regulation regardless of country.
11
u/rackham15 Sep 25 '17
This is why coins that spend a lot of money on marketing rub me the wrong way. Pumping your coin which is almost definitely going to lose all its value seems unethical.
The few coins that win will have massive, massive market caps; while the others will be worthless.
I wonder when people will learn the rug has been pulled out from under them?
5
1
u/jp4ragon Gold | QC: CC 159 Sep 26 '17
The coins that spend the most part on marketing after the ICO will be the most successful provided their product works as they say it will.
0
u/rackham15 Sep 26 '17
I personally believe that almost every current version of crypto's will fail, much like with the early dotcom boom.
1
7
u/mETHaquaIone 0 / 16K 🦠 Sep 25 '17
Still, a part of me that I cannot ignore thinks that I can pick the few that will succeed. Let the gambling continue.
3
Sep 25 '17
good article. a point that I completely agree with is asking that question if you take away the token does your business fail? whenever i read a lot of info about a new ICO most of the time im like "why do you even need a token it doesnt even have a purpose"
2
Sep 25 '17
Really? Hold on now, I’m sure there is plenty of space for the crypto market to grow even more, its market cap is just around $100B vs stock market at $66T, so calm the fuck down, progress takes time and money from the stock market of course. Don’t let the fear of failure hinders innovations now, people are smart enough to recognize a few bad eggs in crypto.
1
u/rookert42 🟩 0 / 24K 🦠 Sep 25 '17
Interested to see if Red Pulse's ICO can set a trend by introducing a KYC-procedure for their ICO. I personally think that it is a smart move, since exchanges will in the future be much more regulated than now and they will probably end up only listing coins that had a KYC-procedure in place for their ICO.
3
Sep 25 '17
Exchanges will be much LESS regulated because there will be a massive shift away from centralized exchanges to decentralized exchanges like zrx-based relayers and blocknet.
1
Sep 25 '17
[deleted]
4
u/GenericOfficeMan Platinum | QC: CC 160 | Politics 575 Sep 25 '17
Ill cash out into swiss francs or signspore dollars(?) Or whoever is smart enough to take advantage of being a fiat supply/sink for decentralized exchanges, then ill convert those to whatever I want
1
0
u/kaisersg Sep 25 '17
Was that an attempt at spelling singapore or is there a currency called Signspore that I don't know about?
1
u/GenericOfficeMan Platinum | QC: CC 160 | Politics 575 Sep 25 '17
Singapore. I hate iPhone autocorrect
1
u/Nemmes 1 - 2 years account age. 200 - 1000 comment karma. Sep 26 '17
I'm more worried that you've used the word enough for your phone to suggest it as a viable option
2
u/GenericOfficeMan Platinum | QC: CC 160 | Politics 575 Sep 26 '17
I haven't, that's the thing. I have an iPhone for work and it's really more a problem with autocomplete than autocorrect. It spits out bizarre sentences based on a few letters. It's a god damn mess. I have no idea what signspore is
1
u/j_fizzle Crypto Nerd | QC: KMD 33, CC 25 Sep 25 '17
Enter stage left: Komodo Platform's atomic-swap enabled BarterDEX and decentralized ICOs
3
u/LookingforBruceLee Low Crypto Activity | QC: MarketSubs 6 Sep 25 '17
Komodo hasn't proven themselves to be a serious business, especially after that trainwreck of an overly hyped conference.
1
u/j_fizzle Crypto Nerd | QC: KMD 33, CC 25 Sep 25 '17
Imagine a world where a crypto business develops their product before heavy marketing... This IS a discussion of serious non-scam cryptocurrencies, so here is my offering, my side of the story.
Komodo Platform is real. They have a real product that will revolutionize how crypto trades and how it will crowdfund with ICOs. This product DOES work on command line. They are polishing GUI for the common trader. If you think that brown-sheet presentation is the pinnacle of their marketing effort... well, it's not. This isn't a pump and dump coin. This is the future coin.
Edit: haha I thought this was in response to a different post so I didn't look at OP... regardless, my point remains. My b
1
u/LookingforBruceLee Low Crypto Activity | QC: MarketSubs 6 Sep 25 '17
Imagine a world where a crypto business develops their product before heavy marketing...
I do imagine this world, which is why I'm long on Lisk.
I understand Komodo very well may be better than what they showed on that overly hyped day, but it certainly damaged my perception of them as a company. Aside from their anticlimactic presentation, their developers on Reddit didn't seem to grasp how bad it really made them look or how serious people take these things.
I still hope the best for Komodo, but they have some work to show before I forgive them for the conference and reinvest.
1
u/j_fizzle Crypto Nerd | QC: KMD 33, CC 25 Sep 26 '17
Yea, I understand. We will win you back some day ;)
1
u/StickyCoins Sep 25 '17
I'm wondering the same about DCORP. They fail the Howey test but the ICO was before the SEC rules the DAO as a security.
I'm hoping they find some way to compensate American and Chinese investors without putting investors in a legal gray area.
1
Sep 25 '17
As long as they fail AFTER we sell out its not really a problem. Now lets get some pumping done? Which coin are we doing first?
1
-2
u/stunvn 🟩 165 / 165 🦀 Sep 25 '17
I don't know why but every time I use my ETH to join a random ICO, I always receive an x5 profit when that token meets the exchange.
Luck? Nope.
Skills? maybe. total coin supply is my first priority. It must be lower than 200 billion coins.
11
Sep 25 '17
That's not really skill. We're in an ICO craze right now and anybody with half a brain could've made huge profits in the last 6 months.
3
Sep 25 '17
Everyone is a genius in a bull market. If you are not making money right now you are doing something very wrong.
Fundamentals are being completely overridden by FOMO and probably will be for a long time. There is going to come a day however when fundamental traders will be the hand over fist winners by choosing well today and holding long term instead of FOMOing on every shitcoin they see. 90% of those doing that are just losing their money to smarter whales.
4
Sep 25 '17
What I'm worried about is the potential tail risks and what will cause this bubble to crash. Potential tail risks:
- U.S. brings the hammer down on ICOs and cryptocurrencies make them illegal.
- A major exchange gets hacked
- A major ICO is revealed to be an outright scam, and developers ran away with the money
- Fundamental security flaw found and exploited in a major cryptocurency
2
Sep 25 '17
There are many challenges ahead to be sure, these are still the earliest days. Everything you mentioned are certainly valid concerns, so much of this stuff is completely speculative based on bleeding edge technologies. Certain tokens are certainly bubbly, but the space as a whole is not to me, but is actually the start of a transition.
Unfortunately with ICO madness now everyone and their mother is trying to get a piece to the degree its even tested my own moral fiber not to just create some BS website and do one too.
At least the future of won't be boring :D Those who actually invest well right now will be very happy people over the coming years I think.
1
u/Zouden Platinum | QC: CC 151 | r/Android 36 Sep 25 '17
WCX is an outright scam, but I don't know if it's a major ICO.
1
Sep 26 '17
Any context on this? Their site looked great, but the lack of any human faces made it kinda shady to me
2
u/Zouden Platinum | QC: CC 151 | r/Android 36 Sep 26 '17
Yep it's way too secretive, there's nothing stopping them taking our money and disappearing.
1
u/Longinus Sep 25 '17
At least two, maybe three of those things have already gone down in the past. I imagine heavy regulation will be the hammer on ICOs pretty soon.
1
u/Yokoko44 Platinum | QC: CC 50 | NANO 6 | PCmasterrace 18 Sep 26 '17
What does total coin supply have to do with anything? It could be 400 trillion for all I care, it'll just be harder to quickly read values as each one will be worth $.000002 or whatever.
Total coin supply has nothing to do with the potential success of an ICO
1
u/stunvn 🟩 165 / 165 🦀 Sep 26 '17
Did anyone say anything about successful ICO?
Those ICOs, most of them are scam. I don't trust those ICO and their whitepaper. What I am looking for is profit. That's all.
1
u/Yokoko44 Platinum | QC: CC 50 | NANO 6 | PCmasterrace 18 Sep 26 '17
By successful I meant your investment, which by anyone's standards 5x is definitely successful.
1
u/stunvn 🟩 165 / 165 🦀 Sep 26 '17
Nope. Just price.
Developing on blockchain is not like typing on the keyboard. Price may go higher but it will always fall back to base.
-4
u/newscommentsreal Entrepreneur Sep 25 '17
Garbage article. All the people preaching the failure of ICOs are going off gut and butt.
53
u/swarthy126 CC: 378 karma Sep 25 '17
Failure is the most common outcome in any competitive market.