Crypto Frontline

Now that the price of the most majority of cryptocurrencies is dropping, people might be asking if it is might be profitable to invest in new ICO projects. As we have shown in a recent material about ICO statistics, there is a positive correlation between the performance of the cryptocurrency market and the amounts invested in ICOs. Since the beginning of 2018 cryptocurrencies had been heavily under pressure and the ICO market had followed the same path, meaning investors lost trust in this innovative way of funding.

Could an ICO still be profitable?

In the long run – why not? The key element of the process is to focus on the company behind the ICO. All the projects look good on the white paper, but still, do you even know that more than 50% of the ICOs are not profitable? And less than half of the coins that raised funds this way, are below their initial value?

That does not mean it is a bad investment. From the contrary, the blockchain technology is truly a disruptive invention and has a high potential. What we want to emphasize here is that the ICO market is not an infinite reserve of wealth where people can fill their accounts.

The same principles of investing apply here as well. The key information you definitely need to understand is focussing mainly on the company behind the ICO and the people that work there. They are the ones who can make the ICO successful and by doing that, you will benefit.

The main issue when it comes to investing in ICOs in 2018 is related to regulation. We’ve recently talked about Pakistan banning ICO transactions, joining a group of countries which already have this aggressive approach.

If you manage to develop a methodology for picking up successful companies that will run their ICOs, the current retracement in the price of cryptocurrencies will only enable you to buy at much lower prices. Don’t need to fear about a bear market as it can have a handful of positive impacts: most scams are disappearing, successful companies become cheaper to buy.