The CEO of Ripple and the Cofounder of Ethereum are in the news this week claiming that the majority of ICOs are scams and need to be closely reviewed by investors and consumers.
While I agree that there are some questionable ICO projects out there (see: Jesus Coin ), the idea of funding a project outside of traditional venture capital is an appealing one. The fact that this funding mechanism is abused by harmful actors is unfortunate. The real harm of the ICO craze, however, is how it negatively impacts the cryptocurrency ecosystem as a whole by diverting resources and attention from larger, truly innovative projects.
Personally, I’m glad that the ICO craze of mid 2017 has died down. Half baked Ethereum projects, some with absurdly long product release schedules, were taking too much funding away from revolutionary protocols like IOTA and Ethereum.
What we are seeing now is a micro trend movement from a focus on smaller projects to larger projects. With all the Bitcoin hardfork news behind us (for now), it seems the market is willing to once again bet big on the top 20 players.
As institutional money starts to flow into larger, more established projects, expect to see large, high marketcap projects continue to dominate into 2018 as the majority of ICOs look increasingly less favorable to investors.