Digital currency enthusiasts will be pleased to hear the era of IPOS and ICOs is slowly coming to an end. Especially the altcoin scene has seen far too many ICOs and IPOS throughout the years, most of which turned out to be a complete scam in the end. It has taken quite some time, but the business world has come to the conclusion that going public is bad publicity for most projects.
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The ICO/IPO Era Is Coming To An End
Although investors are still looking for promising startups – or altcoins, in the digital currency world – projects which go public through an IPO or ICO are losing their appeal. This news might be more worrying for startups in the Bitcoin and Fintech world, however, as it becomes a lot harder to raise funds. But in the altcoin world, this news is of great importance, as far too many scam projects have taken place throughout the years.
It would be unfair to compare startup IPOs with an ICO in the altcoin world, even though the principle is the same. Funds have to be raised for a project, and whether it is a new digital currency or a brand new business, results have to be delivered rather than later. Both industries want to attract investors from all over the world, and raise enough funds to bring a project to fruition.
But whereas startups have a working prototype in most cases, altcoin developers have next to nothing to show for their project. Additional features need to be developed, which is why funds are being raised to pay for the developer’s time. Startups usually have no funding either to deliver a project that is somewhat usable, and altcoin projects should be no different in this regard.
Anyone who is passionate about their project will not worry about raising money from day one. Hard work will pay off, but that hard work also means paying for time and help out of one’s own pocket. Altcoin projects have hardly ever taken this approach, as development roadmaps and features are only added after the ICO. Empty promises do not sell all that well in the altcoin world, nor do they where startups are concerned.
Raising money through an IPO or ICO means companies will have ‘money to waste’ when enough money has been collected. This is hurting more projects than not, and that is no different for either startups or altcoin projects. It is due time ICOs, and IPOs come to an end, as money will not always help in building a successful service or currency.
Source: Siliconbeat
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