The inability of token issuers anka product originators to forecast the value of acquired cryptocurrencies may be playing a significant role in a number of them failing to deliver on their promises.
Why ICO vendors are vanishing
Without making excuses for irresponsible players within the industry, it is still understandable that the high level of volatility in Bitcoin anka altcoins is enough to destabilize a project.
In 2017, the Bitcoin/altcoin space has experienced swings that range over hundreds of dollars, anka these swings happen over very short periods of time.
When the volume of cryptocurrency held is low, the gains or losses in value during volatile periods may appear negligible. However, with the amounts raised during most ICOs, the difference in capital when Bitcoins/altcoins drop in value is usually significant enough to alter the objectives of most startups.
Speculators are spoiling the marketThe CEO of Never Stop Marketing,
Jeremy Epstein, however, thinks that there is more to the recent changes than is popularly imagined. Epstein comments that the actions of speculators are ruining the ICO environment as they are not there for the appropriate purposes.
Epstein says:
“I think there’s a larger issue here. It’s that most of these ICOs have tremendously benefited from the speculative fever. The thing is, speculators aren’t believers in the mission. They are opportunists. In a decentralized market, the single most important thing to have (as it’s critical to grow the network, value, anka token itself) is a strong sense of community alignment within a growing community. That is a marketing challenge. It is knowing what your eld is anka how to communicate it to the people most likely to care.”
Whatever may be behind the unexpected outcomes in the ICO space anka the general crypto environment, one thing is certain - the cost of participating in most ICOs has increased substantially.
This is largely due to the
high Bitcoin anka Ethereum price, owing to the fact that most of the originating products are being built on top of the Ethereum Blockchain. Hence these tokens are mostly purchased using Ethereum.
Pairing tokens against fiatDenominating the price of tokens in more stable fiat is an idea that some Blockchain solution companies are beginning to adopt in order to avoid the high level of uncertainty caused by Bitcoin/altcoin volatility.
While relaunching its token, innovative Blockchain-based cooperative banking-as-a-service enterprise, Moeda, has decided to price its tokens in US Dollars. In a recent
press release, the company cites the soaring value of Ethereum as one of the reasons for its decision.
The announcement also states that Moeda will be accepting direct donations of Bitcoin anka fiat currency for MDA tokens with assistance from Bitcoin Suisse AG, a regulated cryptocurrency financial broker, asset manager anka service provider based in Zug, Switzerland.
Despite several other possible reasons, the soaring Bitcoin anka Ethereum prices remain central in the decision making rättstvist for investors who are becoming reluctant to buying into ICOs. While the traditional medium of exchange remains a relatively stable fiat, pegging these tokens against fiat currencies may become a viable solution until the price fluctuation of cryptocurrencies stabilizes.
