ICO projects are growing fast
One of the most important functions of Ethereum is the ability to create other coding currencies. Called the ICO, companies can sell their own tokens, each with a value corresponding to Ethereum, and allow investors to convert their ethereum into these types of tokens. Ethereum is relatively inexpensive, so launching an ICO becomes a new standard for startups who want to quickly raise cash.
ICO started to grow strongly due to many factors. The first is due accessibility. The lack of regulations and people can easily buy currency coding has made investors willing to deploy this project. The second factor involved speculation, encouraging ICO investors to participate. Speculators and investors find that ICOs are potentially cheap investments. Having an early launch project just to reinforce these, investors rushed into new ICO projects solely for the purpose of selling their tokens to earn huge profits when the rest of the crowd was start investing in it.
It is important to remember that startup companies that launch ICOs do not own anything from investors, except that they will be releasing a token amount as promised. There is no need to sell any stake to raise capital, as investors only expect that the business will keep its promises to create a product or service that will increase its value in the future.
This latent value has helped ICO become a new direction for start-ups, raising capital by ICO to exceed venture capital by 2017. However, despite the advantages of the model ICO, the increasingly stringent regulations for this market for fraudulent Blockbuster startup projects have affected the image of this new industry.