The Bitcoin was the main financial attraction during 2017, and many startups were created during this year to mimic its success, but as one could have expected, many of them failed. In order to understand why these attempt to make Bitcoins-like successes, we need to take a closer look at those newly created cryptocurrencies.
The Bitcoin, the first of all cryptocurrencies
The said economic bubble that surrounded the cryptocurrencies in 2017 started with the Bitcoin, whose value rose up to 2000% of its value from January to mid-November. Whenever someone claimed that the trend would end, the Bitcoin value never failed to deceive such claim, and kept going higher and higher as time goes by.
During this period, many people attempted to become rich through investments in cryptocurrencies, and many entrepreneurs were inspired to create their own digital asset. Indeed, the general prices of cryptocurrencies tokens rose as well, led by the first cryptocurrency that has ever been made. Online exchange were the easiest solution for people who don’t entirely grasp how cryptocurrencies work, and yet want to make money out of it.
Why most of ICO didn’t make it to 2018?
A total of 902 ICO were initiated during 2017, studies shown, and nearly a half of them didn’t succeed. The first step was the fundraising, and 142 cryptocurrencies failed to earn enough money to even be launched properly. Past this step, the cryptocurrency would have to be sustainable, and 276 failed to do so.
It all depended on how they could keep their community active enough, or attract buyers for the tokens. Unfortunately, most people lost interest in specific cryptocurrencies whenever they fail to actually bring consistent plus-value to the world. On the other side, we can mention the exit scammers, which are startups created with the only purpose to gather people’s money and then steal it by simply vanishing.
These type of situation is what making some people afraid of investing their money in cryptocurrencies, however it’s easily avoidable, if you’re careful enough. It’s not the only kind of issues that digital assets faced in 2017. For example, some ICO’s community that were founded in 2017 are actually deemed too weak and inconsistent to allow the sustainability of the related currency. If those whose failure is in the happening are included, the percentage of failed attempts of cryptocurrencies in 2017 rise up to 59%.
Some lessons are to be learned by cryptocurrencies
It’s a mistake to jump on a trend and expecting it to last forever, like the cryptocurrencies craze. Such rise in popularity may be a good way to make a lot money on the short run, but one needs to think things a little deeper if one wants to create something that would last. The first goal should not be making profit, but to create value, and help the society by doing so, otherwise you can’t survive as a company.
For all of the reasons mentioned earlier, not everyone was surprised that several ICO didn’t succeed to grow and flourish. 2017 can be considered as a trial year for most of the cryptocurrencies created during that period. In that spirit, some ICO initiated last year but who failed to raise enough money are giving it another try in 2018, with fingers crossed, and – we hope it form them – lesson learned.