What’s Happening With ICOs
SummaryInitial Coin Offerings (ICOs) have been raising millions in the cryptocurrency space.These have brought uncertainty and volatility to the market since many coins are unproven thus far.There is a distinction between many coins and those backed up on the Ethereum protocol.Those backed on Ethereum (ERC20 tokens), if successful, could bring tremendous value to Ether coins.
After a roaring mid-June that saw the value of the Ether token almost double, prices have settled back down to the pre-June price of about $225. This was still an unbelievable feat in May, since the token start that month valued at near $9. Analysts (professional and amateur) went wild with speculation on what the jump meant at that time, what the future of this technology holds, and what the “correction” back down to current values from its all-time high of $394.
One consistent streak through all of that analysis was that initial coin offerings (ICOs) were at least partially responsible for both the rise and the fall of Ethereum. Take the recent Huffpost article about the ICO “craze”. It points out that $600 million have been raised in ICOs (for the uninitiated this is like an IPO for crypto, only it usually happens with just an idea, a whitepaper and some code) in just the last 30 days.
Many think this will continue and that “alt” coins will be a dominant factor in the cryptocurrency market for years to come. This conclusion more so with Ethereum than Bitcoin, since Bitcoin is already relegated to being a currency and a currency only, while Ethereum touts to be a currency, protocol, and platform on which other coins are built.
In this article, we’ll examine some alt coins and their effect on the future value opportunity of Ether.
Let’s start with fundamentals. There are now thousands of alt coins being either traded or developed. Many have very specific functions—coins meant to use cryptocurrency trading within industries like real estate, data storage, and even for marijuana growers. Within the alt coin market, there is a subset of tokens that are built on the Ethereum protocol—the underlying technology that gives Ether its value. These are referred to as ERC20 tokens. You can reach much more about that here.
Orignal Author : Freedonia Freelance