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Before laying out our predictions on trends with cryptocurrency, we need to review a bit of history and analysis.
After several years of slow climbing in price, Bitcoin did not significantly start to rise in value until the tail end of 2016. Many analyst attribute this to institutional and retail investors from counties such as China, Japan and Korea. Remember the hit Gangnam Style? As 2017 progressed, institutional money started to increase from the US as well. By the end of 2017, Coinbase had over 13 million users alone. Much more than Charles Schwab. This ended up as a tremendous amount of money poured into cryptocurrency in a short amount of time. Market caps soared.
Another factor that drew much attention to Cryptocurrency was the increase in ICO offerings throughout the year. In fact, 5.6 billion dollars were raised via ICOs as compared to only 240 million raised in token sales for 2016. These figures end up delivering at least 3.5x more capital to blockchain startups than VC since 2017. Rightfully so, the ICO model can be seen as an improvement from the venture capital model. Both the investors and the founders win.
Cryptocurrency funding ICOs
Most, if not all of these, ICOs accepted primarily Bitcoin or Etherium to fund their token sales. This, in turn, drove up the price substantially. Not only for these primary coins, but newer coins also such as Ripple, Filecoin and others. This is what created the Cryptocurrency bubble.
Long term confidence in a new market
When you add in the newness of crytocurrency, blockchain technology along with stories of scam ICOs and large amounts of stealing, the bubble burst. Many analysts are confident that cryptocurrencies are here to stay and that the value will well surpass previous records. This is where the term HODL (Hold on for Dear Life) comes in. Those that buy or bought at the lower prices and hold for a lengthy term will most likely reap very huge benefits.
When venture capitalists invest in earlier stages of companies, their capital is usually locked up for several years in hopes of a massive payday. Token sales provided investors with instant liquidity allowing them to freely move in and out of projects whenever they saw fit. Investors are now wising up a bit toward ICO offerings and looking closer in the project goals, the team behind it and how the project itself will encourage increased value of the coin offered.
Lantah's ICO offering
In our next and final installment of this short series, we at Lantah will layout our prediction in trends for ICOs and cryptocurrency for the months ahead. For the time being Lantah is limited to accepting investments from accredited investors only. Once the goal is reached, our project will start with the first phase and the ICO will be officially launched. Lantah is a very unique ICO offering that will naturally attract the wiser audience of today as compared to the hype that ruled in 2017.