If the ICO markets are anything like the IPO markets, which issuers would argue against and regulators suggest is sometimes the case, then now’s a good time to launch a new token. That’s because Q3 performance in leading cryptocurrency prices was impressive, with the bitcoin price rising 75%. Results give upcoming ICOs something to aspire to should they eventually trade on their own value and not only function as a tool for their ecosystem.
Performance in some other cryptocurrencies was not too shabby either, with the likes of Dash gaining 82%. Meanwhile Ethereum experienced a more modest 8% rise while Ripple fell by a double-digit percentage in the quarter.
It’s common for IPO issuers to want to debut in a rising market because it’s a gauge of investor appetite for equities. The same's true for ICOs.
In addition to the rising bitcoin price, upcoming ICOs could also take advantage of the momentum from their own asset class, such as the Power Ledger ICO. That token sale, which was Australia’s first, generated USD 34 million across its pre-sale and main sale, as per the company’s Twitter post.
One upcoming ICO that’s surely observing the Power Ledger results is fellow Aussie Hydrominer. The deal, whose issuer is a green-energy startup, is scheduled to begin on Oct. 18. Hydrominer explains on its website why it didn’t pursue a more traditional means of fundraising. The company basically states that a crowdsale has the potential to reach people who might otherwise never get a chance to participate in new issuances.
Australian regulators recently warned ICO investors that the deals were “high speculative” and “unregulated” transactions by which the likelihood of losing money is high amid possible fraud.
Despite the regulatory environment and even without Q4’s results, 2017 has been a standout year for ICO issuance that has surpassed the USD 2 billion threshold. Whether this pace can continue into 2018 remains to be seen, especially if calls of a bubble forming in the asset class are true and prices begin to deflate.