Few commentators have remarked on one big difference between the 2020 and 2017 bull markets: the fact that record bitcoin (BTC) prices weren’t complemented by a wave of high-profile initial coin offerings (ICOs). Unlike 2017, there were few notable ICOs that took advantage of heightened interest in crypto by raising tens or hundreds of millions of dollars, indicating the possibility that ICOs are largely finished as a vehicle for raising big bucks.
Is this true? Will ICOs and other kinds of token sale (e.g. initial exchange offerings, IEOs) be increasingly superseded in 2021 by more traditional routes to raising funds, such as venture capital and initial public offerings (IPOs)?
According to a range of industry players speaking with Cryptonews.com, this is indeed likely to be the case this year, and for the foreseeable future. However, while they’re likely to be avoided by the biggest companies in the crypto industry, token sales will remain a fixture of crypto for some time to come.
ICOs: Yesterday’s fad
While we haven’t yet been treated to this year’s report, CB Insight’s Blockchain Report 2020 revealed that ICOs have taken a massive hit when it comes to the amounts of money they raise.
Compared to 2018’s impressive USD 7.8bn, sums raised in 2019 basically collapsed, falling by