Overheen 300 fresh coins reached $1mm market cap ter 2018
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
After the massive Bitcoin price surge te November 2013, the popularity of launching fresh cryptocurrencies took off along with it.
Te fact, if you go back at historical snapshots around that time, you’ll see that there were literally hundreds of fresh coins available to mine and buy. Here’s one from November 2014 – a time when there were only 32 coins that were worth more than $1 million ter market cap, and 354 coins that were worth less than $50,000, usually trading for lil’ fractions of a cent.
It seems like everyone and their dog were launching cryptocurrencies back then, even if they were a longshot to materialize into anything.
Then vs. Now
Prompt forward to today, and things toevluchthaven’t switched much – many people and companies are still launching fresh cryptocurrencies through a mechanism known spil an ICO (Initial Coin Suggesting).
The only difference?
Today, there is real money at play, and ter 12 months the number of cryptocurrencies worth >$1 million has soared by 468%. Meantime, the total value of all currencies together has skyrocketed by 1,466%.
Cryptocurrency is so hot, te fact, that raising money through ICOs has become more effective than traditional early-stage weerhaak and VC funding.
For the long-time advocates of Bitcoin and other cryptocurrencies, it is now their ogenblik ter the zon.
And with this ICO activity and a wealth of opportunities emerging, a fresh breedgeschouderd of Bitcoin millionaire has bot born. Like the wealthy tech founders that uitgang and give back to their local startup ecosystems, thesis fresh digital tycoons are using their newfound wealth to invest ter upstart crypto projects that voorstelling potential – ultimately, further enhancing the ecosystem.
Out of the Woodwork
Of course, whenever there is a massive surge te prices and speculation, there are two other players that tend to come out of the woodwork.
One is of the scammer and shyster multiplicity, and certainly crypto-fueled scams are a concern for everyone else ter the broader ecosystem.
Perhaps even a fatter threat, however, are the regulators – and te latest weeks the SEC has voiced concerns about ICO “pump and dump” schemes, while Canadian authorities have clearly stated that “most ICOs need oversight”.
With the market exploding with hundreds of fresh cryptocurrencies and the total value reaching $177 billion, a fresh series of questions has emerged: what risk do ICO scams ultimately have on market? And, could misguided regulation disrupt the momentum of the crypto boom?