Photo by Chris Barbalis on Unsplash
Crowdsales went off the charts in 2017 when cryptocurrency prices sky-rocketed, resulting in an influx of investors, increase in Blockchain start-ups and otherwise traditional companies looking to get into the Blockchain space to drive efficiencies, customer retention and cost savings. In 2017 alone, the value raised by crowdsales that year was over USD$5.6 billion.
Nearly 50% of crowdsales failed
A common misconception abounds that raising funds through a crowdsale is easy, nothing could be further from the truth. Despite the amount raised through crowdsales in 2017, it has been stated that 46% of crowdsales ended in a failure for that year while another article puts the figure at 48%, with most having failed during the post-crowdsale period. Some blame the failure of crowdsale’s on bad use cases, technical and security issues, and even regional disparities.
Whatever the case, the numbers are enough to cause concern, giving cryptocurrency and, by association, blockchain technology a bad reputation.
Does this mean all hope is lost?
The truth is not all cryptocurrency projects fail, A growing number of projects live on long after the crowdsale period, as proven by the success of leading blockchain projects such as Ethereum and NEO, going to prove that all crowdsales are ineffective or a fad.
Blockchain and cryptocurrencies are the future, it can’t be denied. Instead of scaring off investors, this should urge investors to keep an eye out for newer blockchain projects that provide solutions to real-world problems and address issues such as scalability and transparency the way the GALLACTIC Blockchain is doing.
Despite the volatile prices in the cryptocurrency market and the government restrictions placed on certain aspects of Blockchain i.e. cryptocurrency, Blockchain technology and all its applications are here to stay. Bottom line, whether the world is ready for the change that this technology will bring, it doesn’t matter. It is here to stay and mass adoption is just around the next corner.