The time of ICOs is mostly over
Or, to put it another way, ICOs, as we knew them, are dead. There are simply too many of them now - by participating we send the message that this exponential trend should continue, yet it is not sustainable.
(I copy here the rest as I seem to have a problem with publishing through busy.org - all the text goes in the title which has limited length)
... unless more fiat money gets converted into crypto at a similar pace - which cannot happen. Hence by participating to new ICOs from a too-slowly-expanding pool of money we are spreading thin and implicitly diluting the value of all the cryptos (existing and new).
Hence the right strategy is to stop contributing to ICOs, even good ones, UNTIL the flow of fiat into crypto catches up with the explosion in diversity of crypto projects.
I thus believe the right strategy is twofold:
- help existing projects succeed (it might be unfair because being first is not synonimous to being best)
- persuade people not yet convinced of the hugely positive role that these technologies can have on our future
By the way, the market tries to signal exactly that: the prolonged weakness of the prices, the "sea of red" may well be indicative of the following phenomenon:
The teams who have sold tokens now need to extract capital in order to deliver on their promises. It's only normal. Company X has sold a "X" token through an ICO and raised BTC and ETH ... the only reason why that X token would increase in value at this point in time is if another guy comes and takes it off your hands for more because he/she believes more (emphasis is on "believes").
Else, the raised BTC and ETH needs to be sold on the market to pay the rents and food of the developers working for X
That puts downward pressure on BTC and ETH and in turn on all crypto assets. The trend is reversed when (and if) "X" starts actually delivering on the promises made ahead of the ICO.
My advice to those worried about the prices of crypto would thus be: focus on the projects - the promises that gave value to the cryptos. Specifically for steemians, if you are worried about the price of STEEM, the best reaction is to read, post, upvote, follow and generally ... steem on!
(cont 2) I thus believe the right strategy is twofold:
(cont) ... unless more fiat money gets converted into crypto at a similar pace - which cannot happen. Hence by participating to new ICOs from a too-slowly-expanding pool of money we are spreading thin and implicitly diluting the value of all the cryptos (existing and new). Hence the right strategy is to stop contributing to ICOs, even good ones, UNTIL the flow of fiat into crypto catches up with the explosion in diversity of crypto projects.
To many. Prea multe