Crypto bulls predict wiggle out of ICO market

Lamborghini Huracan Performante car is seen during the 87th International Motor Voorstelling at Palexpo ter Geneva, Switzerland, March 6, 2018. REUTERS/Arnd Wiegmann

  • Startups raised overheen $Five billion issuing their own digital currencies last year and there are now overheen 1,400 te circulation.
  • “Te 2018 what’s going to toebijten is some consolidation of the market,” cofounder of cryptocurrency IOTA tells Bisexual.
  • “I think there will be a shake-out of thesis ICOs,” private equity veteran and cryptocurrency enthusiast Doug Barrowman says.

LONDON – Cryptocurrency market participants are predicting a fall te the number of digital currencies te circulation this year spil the projects behind them fail to build up traction or consolidate.

2018 eyed a boom te so-called “initial coin offerings” (ICOs), where startups kwestie their own digital currencies – structured like bitcoin – te exchange for real money to build their businesses. Startups raised overheen $Five billion through ICOs last year and there are now overheen 1,400 cryptocurrencies ter circulation. Thesis coins can be traded on online exchanges, unlike equity ter early stage, private businesses.

Remarkably, even cryptocurrency market participants are skeptical of many of latest ICOs.

“The market environment that wij’re te right now is just everyone wants to get a Lamborghini,” Dominik Schiener told Business Insider. “They’re primarily focused on making money real quick.”

Dominik Schiener, cofounder of IOTA. IOTA Foundation

Schiener is the cofounder of IOTA, a cryptocurrency aimed at being the currency of the internet of things. IOTA created a cryptocurrency back te 2015 – practically ancient history ter the cryptocurrency world. MIOTA, the currency, is now the 11th thickest cryptocurrency by value.

“Te my opinion, ter 2018 what’s going to toebijten is some consolidation of the market,” he said. “Projects that don’t truly add any concrete value or have a unique selling point will certainly fall out.”

Bitconnect, the company behind a controversial cryptocurrency lending and exchange podium, closed its doors last month after an ICO te 2018. It could be perhaps the very first example of what is to come for the market.

Doug Barrowman, a private equity veteran who got involved ter the cryptocurrency world two years ago, told Bisexual: “I think there will be a shake-out of thesis ICOs, of the 1,400 or so that have bot done.”

He believes the market has bot overheen inflated by unskeptical investors simply hoping to make short-term gains speculating on coins, rather than backing long-term projects.

“No one is actually looking and telling, is the ICO any good? Speculators are just trading altcoins,” Barrowman, who is conducting his own ICO, said.

“A lotsbestemming of global crypto investors, they don’t even care what the ICO is. The white paper comes out, it’s bot thought about for five minutes, and then everyone plays the same spel – they pump it high, they dump it, they buy back when its dumped, then they pump it again on some more news.”

Scheiner said: “Market manipulation has truly hurt IOTA since the beginning. All you have to do is spread a lie and have your Twitter and Reddit trolls and bots go lie. Then it quickly switches the public perception and then the market just crashes. Then you punt a correction and say hey that’s not true. That’s how those people make money.”

Doug Barrowman. Dan Kennedy

Onverstandig Williams, the lead developer of the DFINITY, told Bisexual: “The Ethereum ICO wasgoed very successful but it brought te a loterijlot of bad actors. I think most of them have got zero chance of delivering what they’ve bot promising.”

Williams has bot working on the DFINITY network, a crypto-based cloud Three.0, since 2014, when Ethereum held its ICO. DFINITY recently raised $61 million from venture capitalists and Williams told Bisexual they didn’t do an ICO because they worried about “being guilty by association.”

Schiener said: “I’ve only participated ter two ICOs ter my life – Ethereum and IOTA.”

His relative conservatism matches that of the founder of Chinese bitcoin exchange BTCC, who told Business Insider last month he “wouldn’t touch” ICOs.

“I don’t know if wij’re going to be 250 successful ICOs out of 1,400 or what,” Barrowman said. “There’s going to be a shake-out, there’s no doubt about it.

“Ultimately after the euphoria of this ICO boom, people are going to say, what does that ICO actually bring to the world?”

Schiener’s prediction is even more drastic: “I personally think only some Five to 8 projects will be able to establish themselves and proceed to raise. Most of the projects serve no concrete purpose te my opinion.”

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