Renewed ICO Momentum Might Recharge Ethereum in 2019

Most opinion makers, like well-known investors and YouTubers, repeat the same idea over and over until it becomes a sort of common knowledge: ICOs have brought negative popularity, great losses and total chaos to Ethereum. These opinion makers share the ideas that most ICOs are scams and that this is a general perception that will kill Ethereum. They even dare to suggest that ICOs are doomed.

However, like many other facts in Crypto, nobody has offered solid data to back up these volatile opinions. If one analyzes the evolution of ICOs and the potential benefits of some of them, one could also say the opposite: ICOs have had their learning period and the next round has the chance to be positively astonishing. ICOs have been an efficient way to gather funds for innovative projects. Few people would disagree with this part. And since they have been efficient at least in this respect, one can consider the probability for these not to disappear, but to evolve.

Ethereum was developed thanks to a collective funding platform, an ICO, that took place from July to August 2014. The system finally launched as a permission-less public Blockchain on July 30th, 2015. The novelty of Ethereum was that it would become a global supercomputer. On Ethereum, one could build public uncensored computer programs for the people available without discrimination. These programs are the Smart Contracts. From this moment, Ethereum saw an exponential growth until reaching its all time high of more than $ 1,400 in December 2017.

One year later, in December 2018, it seems that Ethereum has seen its bottom. Throughout 2018 its price has fallen rather gradually. This, coupled with the predominant market depressions, drove down the price of the ETH to almost $80 per coin. Ethereum is one of the platforms that has lost the most relative value during 2018. Still, recently, more and more people are beginning to express the opinion that the $80 level may have been the steepest low.

Maybe the bottom has been touched. This would represent a decisive factor in the resumption of Ethereum’s most renown activity, the ICO. Why should not the business of the ICO be a legitimate, valuable and lucrative one? If one thinks that many other platforms are investing millions of dollars to reach the capacity to offer ICOs, then one would have to think that ICOs are very far from the tendency to decrease in number.

Many of the most advanced Blockchains dream of capturing a percentage of the Ethereum’s ICO market. Examples are Stellar, Cardano, Ethereum Classic, NEM, EOS, NEO and many more. Even platforms that were not originally created to host ICOs are already being re-evaluated and developed to do so.

For example, a system for ICOs has already started on Bitcoin Cash. A similar system could be used with Bitcoin and Litecoin soon. No high-level platform is ignoring ICOs. One might suspect, however, that bad publicity for ICOs could even be a market strategy on the part of Ethereum’s competitors to undermine the development of the Blockchain invented by Vitalik Buterin.

As a platform to create and launch projects based on Smart Contracts, Ethereum (ETH) is no longer alone in the market. However, as a cryptocurrency, ETH has not yet lost its place as a leading player. In spite of no longer holding its classic second place in the Market Capitalization Index which is now occupied by XRP – interestingly is very far from the daily volume of transactions and has not been able to conquer the realm of Smart Contracts and ICOs – Ethereum continues to dominate in these areas.

As the bear market comes to an end, many teams continue to work hard and expect a new wave appear in the market. This includes new ICOs. Almost all of those are raising funds in Ethereum (ETH). This means that a large number of cryptocurrency investors participating in these ICOs will first have to buy Ethereum (ETH) and as a result increase its demand in the near future.

ICOs continue to be one of the most attractive mechanisms for entrepreneurs to raise funds. This seems to be a fact, as it is the high daily volume throughout the year. The price of Ether has dropped, but the demand for Ethereum (ETH) goes up as never before. We have seen in the past how Ethereum (ETH) increased from $15 to $1,500 in a year. No power can prevent a new era of modern ICOs with greater security and robustness from happening. Ethereum could very well repeat its history. This is not a sure thing, of course, but do take note that the ingredients for this to occur seem to be present.

A bullish movement in the price of Ether in mid-December seems to say that there are many hopes for a rise. Its value went from about $83 to about $105 in just a few days. A total rise of about 25%. The year 2019 does not seem like it will be easy for Ethereum as a lot of work and new developments in technology will have to happen to bring new value. However, recent signals remind us that prices do not always reflect the reality of the market and Ethereum has always been able to give great surprises.