An entrepreneur Mark Lyford has weighed in on the current state of initial coin offerings (ICOs), claiming that the ICO landscape is undergoing drastic changes. He believes that this is caused by the market oversaturation that leads to dwindling investor interest.
Are ICOs a dated concept?
As CryptoComes has recently reported, ICOs saw a massive increase in the number of investments during the first two quarters of 2018. However, July wasn’t that much of a success– ICOs had a lukewarm reception from investors, which subsequently resulted in the lowest monthly figures this year. Lyford states that this might be a good indicator of what is going on with coin offerings.
He points out to the fact that people gradually get less and less enthusiastic about ICOs. This is particularly because coin offerings are still seen as an extremely risky way to invest your money. While ranging from outright scams to rather decent projects, statistics show that 78 percent turn into a failure not lasting more than a year. Lyford also claims that the market is oversaturated with plenty of new ICOs that are getting launched every day.
What changes are expected?
Lyford predicts that in the nearest future we are going to see more privately owned ICOs that will target a specific group of clients. He also claims that the ICO landscape may be significantly influenced by the upcoming regulations. As of now, the industry is still going through its ‘Wild West’ phase, but more and more politicians are stepping up with proposals to create a regulatory framework for coin offerings.
US congressional representative Bill Huizenga, for example, promises to make crypto regulations his top priority if he becomes Chairman of Financial Services Committee.
Lyford is certain that the ‘big changes’ are already coming in a year.