Growth of ICO industry: Then and Now

Initial coin offering platform is used for raising funds for blockchain-based projects, ICOs are almost like IPOs (initial public offering). ICO helps in providing a faster option for bringing supporters who invest during a new venture across the planet. ICOs are a superb way of generating initial seed funds for kick-starting a startup from anywhere within the world.

ICOs have experienced a fantastic growth story over the past five years. They’re highly used instruments for raising funds from retail and institutional investors.

 The first half of 2018 saw an enormous spike, with ICO volumes reaching US$13.7 billion, doubling the entire amount raised in 2017. ICO in 2018 were propelled by two major projects: TELEGRAM, which raised US$ 1.7 billion, and EOS which raised US$ 4 billion.

The start of 2018 was the tipping point for ICO. The tactic for raising funds was quite new and everybody came to the sport early to prevent the fear of missing out. The likelihood of investing small amounts into projects that promised extremely profitable returns was a novelty, and tons of middle-class individuals saw during this how to build some extra cash. Bitcoins had already made billionaires and ICO was a subsequent big thing. Projects were also promising the moon and beyond. Crypto experts had no experience with ICOs then all of them became a part of the sport, encouraging millions to venture into what promised to be the brilliant way forward for crypto.

By March 2018, analysts had released the very concerning news saying that quite 80% of the ICOs were nothing but old-fashioned scams wrapped within the blockchain mystery. Truth to be told, in my opinion, the projects that started with an ICO in late 2017 and 2018 weren’t necessarily all scams. Or a minimum of not from the very beginning.

In the half-moon (q1) of 2019, the ICO market has reportedly dropped by 97% which supported the quantity of attracted capital. The slump followed the 2017-2018 crypto currency boom, with low investment return among ICOs through most of 2018. ICOs raised over US$ 118 million in q1 of 2019, over 58 times less $6.9 billion, the quantity raised during an equivalent period in 2018.

The downfall of the ICO industry in 2019 also can be explained through the event of latest fundraising methods for crypto projects. Everyone predicted STOs to be the thing in 2019. But it didn’t go so well. By June 2019, there have been no running STO in Europe. STOs were nothing like ICOs. Regulations weren’t straight-forward, the law was complicated, and no-one seemed to get into that. IEOs were interesting but they didn’t solve the issues that had plagued the ICOs. Some platforms were the topic of hacking attacks, security issues, fraud and really important, fake trading volumes.

ICO faced tons of problems during the year 2019 and these problems gave rise to just one question.

The answer to the present question is extremely simple. Except more security tokens being issued.

Within the investors ICOs are regulated, therefore they don’t face any risk from an unexpected source. As a result of which in 2020 are often with the replacement of traditional ICOs with security tokens. Most of the businesses within us are expected to start out their ICO business with the SEC’s security regulations in 2020.

ICO REGULATION IN 2020: ICO regulation may be a hot topic in crypto currency community, with the SEC (US securities and exchange commission) and therefore the CFTC (commodity futures trading commission) are the two regulatory institutions that are continually discussing the regulatory framework of ICO.

Regulation of the ICO sector remains within the early stages, and there’s no uniformity across the various countries. ICOs are warning potential investors before engaging in new investments. SEC (security and exchange commission) states that some ICOs might qualify as securities and that they are subject to federal securities regulations. Among these acts a number of the investors expect this ICO regulation in 2020.

ICO may be a funding method done at the initial level of a business or project. The ICO development process is essentially haunted by crowdfunding. Cryptocurrencies are offered to the potential investors who show their interest in funding that specific project.

The ICO development process plans out and establishes every  part of the project. So as to create a profitable ICO Solutions, people hire an ICO development company that do the work skillfully. From designing to deploying the token, all work is done on the idea of clients.

The leading companies which provide initial coin offering platform are:

1. MLG Blockchain
2. Blockchain app Factory
3. Leewayhertz
4. Zab Technologies
5. BR Softech Technology
6. ICOBox
7. LimeChain
8. Accelerate
9. Incubasys Blockchain
10. Epixel Solutions 
11. TechnoLoader
12. Hash Code Programmers
13. Pharos Production 
14. Token Market 
15. Blockchain Developments

Most ICOs being done today aren’t intended to be securities offerings, as they don’t offer equity or ownership within the underlying company the way traditional angel or venture investments do. Rather, a large majority of ICOs are intended as “utility tokens” which allow buyers of the token to access and pay for usage of a blockchain-based software service.

One example of a utility token in use today is the Ether token, because it relates to the Ethereum computing platform. Ethereum is a blockchain-based platform where the massive majority of the present ICO’s are developed. When using the Ethereum network, there are costs related to the processing of blockchain-based transactions. These costs are paid within the sort of the tokens used on Ethereum, called Ether. These transaction fees paid in Ether are called “gas” within the Ethereum network.

In this way, the Ether token provides access to, and payment for, the computing and transactional functions of Ethereum. But beyond its transactional usage, Ether is additionally a cryptocurrency that’s bought, sold, and traded on the open markets.

So, the closing statement is only that 2020 will be beneficial for the potential investors and the ICOs will be higher compared to the previous year i.e., 2019. Huge investment can be seen in 2020 while gaining profits to the ico development company across the globe.