Hackernoon logo4 Reasons for the Current ICO Reality by@nam-nguyen

4 Reasons for the Current ICO Reality

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@nam-nguyenNam Nguyen

It use to be the case that after an ICO and when tokens became available on exchanges, the value would go up or hold steady.

Those days are gone now.

In most instances, the value of the tokens, has significantly decreased in value when tokens became available on exchanges.

This reality is here to stay for the following 4 reasons:

Marketing leading up to the ICOs creates interests and demand for the tokens. Once the ICO has ended, marketing stops, interests decreases, demand decreases.

Price of token at ICO is set by seller.

Development is hard and is almost guaranteed to takes longer than expected. With promises unmet, value and faith in the project diminishes.

Adoption is always over estimated or neglected. Adoption is required in order for true value to exist. People overlook the need for adoption or over estimate the speed of adoption based on certain signals.

This trend will reverse when the following happens:

ICOs become fairly priced.

Proper and effective governance/accountability is established within these projects.


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