It’s not over yet…
Speaking to Joe Weisenthal on Bloomberg’s ‘What’d You Miss’ program, Wood (below, right) first acknowledged that the fact that most ICOs involved the selling of tokens that are hosted on Ethereum’s network no doubt contributed to Ether’s (Ethereum’s native currency) surge in value.
However, even though Ether, along with most other cryptocurrencies, including Bitcoin, have been bearish for most of 2018, Wood believes that ‘ICOs still have a while to run’.
He explained how now the lucrative boom period of ICOs seems to be coming to an end, the people left in the space are the ones who are actually invested in the technology rather than those just looking to make a quick buck, so to speak.
And, though this change has seen the value of the cryptocurrency market, in terms of total market cap, fall significantly, this is not necessarily a bad thing.
Indeed, the volatile swings of 2017 caused by pump and dumps and wild speculation and hype followed by panic selling was actually damaging to many cryptocurrencies that feature utility coins which the creators intended to be used within their respective ecosystems.
“There’s going to be a lot of evolution”
If a coin or token is to be used as currency, it must demonstrate a degree of stability and, during 2017 and even to some extent now, this has simply not been the case.
To this end, Wood said: “There’s going to be a lot of evolution of ICOs down the line but the basic idea of having an open market joining crowd funding projects is not something that’s going to go away.”
So, Wood believes that things will calm down but the basic idea of ICOs will remain the same.
Wood added: “I think we’re just going to see a lot more innovation in terms of managing which projects are the ones that get the most interest – things like that.”
It's true that as the sector becomes more and more saturated with ICOs, investors are becoming much more weary of scams or non-viable projects.