August was the worst month in 2018 for projects that raised funds through the ICO. The market is also not happy with the growth trends. Given that the ICO sphere is under pressure due to the high growth of fraud, it is possible that the market will not be the same as before.
In the mid-to-late 2017, the main growth factor for BTC and ETH was their use as a means of raising money to promote ICO projects. They used smart contracts and ERC20 tokens, giving project developers access to people interested in supporting their solutions by simply sending crypto currency.
The standard smart contract of the ERC20 standard led to the appearance of the Ethereum blockbuster and created one of the first real options for using smart contracts on the blockroom as a tool for raising funds. Given the popularity and availability of Ethereum and Bitcoin, they were generally the main choice for ICO.
However, in recent years, the fall in the rate has cooled and ICO. Projects that had stocks in ETH and BTC began to realize that the value of their assets dropped significantly as the prices for crypto-currencies fell.
Such a scenario is relevant to many ICO projects that are beginning to worry about the diminishing value of the crypto-currencies they collected during the ICO.
In the short term, this means a potentially dangerous situation for crypto investors. After all, if the projects sell out ETH and BTC, which currently make up 68% of the market capitalization of the market, then any movement at a price will seriously affect the whole sector.
In general, although ICO-projects seem to really have to tighten their belts, everything is not so bad. Because now projects will be able to focus on product development and profitability of the project.
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