Image source: themerkles.com
After seeing the new innovations coming in, into the crypto space, it keeps me pondering if ICO's are really making people to lose faith in crypto biz.
Towards the end of last year, all cryptocurrency hodlers reached their maximum peak with the help of the popularly know method of fund-raising called 'initial coin offering' but today it is a different case as there are too many records of high-profile scams which started at the beginning of this year 2018. For this reason and many other reasons like the FUD being spread by the financial authorities via the mainstream media, has stopped the market from reaching the highs we saw towards the end of 2017.
Each day that passes by, there is a decline of trust in ICO's as the investors and companies are now focused on other alternatives of getting into the crypto market. Instead of going through the traditional method, ICO's, the choose to look for airdrops so as to participate in the crypto market.
Now it seems like the 'initial coin offering' method is gradually fading away but only time can prove this to be right.
Centra, offered an ICO and was charged with fraud by the SEC after receiving endorsements from celebrities like Floyd Mayweather and Dj Khaled which guaranteed publicity of the shitcoin.
After being scammed on many occasion, many investors decided to reduce the rate at which they engaged in upcoming ICO's despite the fact that the SEC chairman, Jay Clayton tried to convince them in a statement saying that
ICO's are securities which guarantees an investor's ROI.
Due to all these issues, it now seems like ICO will face an uphill battle in regaining the trust of the community.