What will ICOs turn into in 2018?

2017 has been hailed as the year initial coin offerings (ICOs) went mainstream. In the first nine months of last year, over $2bn (£1.5bn) was raised via ICOs, which enable new ventures or startups to raise funds by issuing crypto-tokens.

OFF3R compiled a list of the UK’s top 11 ICOs in 2017, which saw increasing numbers of people pour in cash. And it’s easy to see what’s fuelling their popularity: a report from VC firm Mangrove Capital found that the average return, across 204 ICOs, is 1,320 percent.

Expect 2018 to be the year several things happen in ICO world: (1) company/project failures, (2) significant corrections in the crypto market, (3) increasingly draconian regulation and legislation, including more nationwide outlawing (China and South Korea have done so already), and (4) lawsuits.

Something else to bear in mind is that not all ICOs are created equal — and this will become increasingly obvious. While some are issued for inchoate projects that lack security, credibility and even proof of concept, others will come from companies that do already have a product or service. You’ll also hear increasing talk of stablecoins, which are pegged to something else that holds value (like a fiat currency). Take care with privately-issued stablecoins that are pegged to another cryptocurrency, though; if the latter plunges in value, so too will the stablecoin. You can read more on this here.