«That’s what’s happening to today’s ICOs. They are raising an eye-watering amount of funds (over 1 billion in 2018 alone), but once the funds are in their wallet, it’s incredibly hard to use them in a practical way.
Here are the two critical issues: liquidity and volatility. The former breaks down like this, I raise $1 million in ETH but I can’t use it to pay my rent. The latter, I raise $1 million in ETH but its value could drop drastically in the same afternoon. Now I’m asking myself….»
Read full post: https://medium.com/@globcoin_io/what-can-icos-learn-from-the-electrification-of-cars-326ee5a63139I fairly doubt if such ICOs really require the amount they raised to come into operation. Most of the successful ICOs from 2017 still have 80-90% of fund raised on their one or more addresses. So before thinking of liquidity aspect, first important question is whether ICO has such large business that actually requires millions of dollars? The answer is no in most of the cases, that's why they are troubled by local authorities, tax authorities, etc. because they can't justify the use of funds and are forced to keep them as it is.
Else otherwise, market has instant liquidity of ETH. You can sell thousand a day without affecting market at all.