The hype around ICOs has recently calmed down and now even high-quality projects are struggling to collect their hardcap. But we know that the most important part is not about how much funds the project will raise, but where the collected money will go. We rarely pay attention to that, but to spend them reasonably is quite a difficult task.
I often hear disputes about fixing collected Ethereum to the dollar. Of course, projects have expenses that need to be covered in fiat constantly - such as maintaining of the equipment and staff salaries. Strong promising projects receive investments not only from ICO but from private investors in dollars and this allows them to save funds collected during the ICO. People get salaries, companies pay for their expenses in Fiat and everyone is happy. But usually, it's not like that.
Let’s imagine that all crypto-economy is one ship, now the sea is very stormy and part of the crew is sure that we are going down. But you know well who is the first to flee the sinking ship
During the last 30 days, ICO projects sold about 100,000 ETH. Is it too much, or not? 28 million dollars at today's rate. If this is still not impressive, then just notice that many projects raised funds with the ETH price over $1000.
To get more thought on that, read my article Half of ICOs dies within four months after token sales finalized
For us, it remains to hope that the situation on the market will allow really good projects to remain afloat. And that they are here not only for the sake of quick profit.
Let bad teams feed the sharks.
Read my previous article: Postponing the ETF decision and the market fall - are we going down to the bottom or do we have new growth opportunities?
