The Uncertainty of Big ICOs: What’s Up with Those $50 Million Projects?

The $50 Million Club: An Introduction

Forget Hollywood, folks! It seems like the new golden ticket is in the realm of Initial Coin Offerings (ICOs). Crypto enthusiasts often lose themselves in the flashing lights of projects raising jaw-dropping amounts, like over $50 million. But hold your horses — many famous contenders still haven’t launched their tokens. What gives?

A Rundown of the Big Names

In a recent update from cryptocurrency trade platform BitMEX, it was revealed that twelve major projects, including the likes of Telegram and Filecoin, are still sitting on a mountain of cash without pushing their tokens live. Imagine investing in something that doesn’t even exist yet! Talk about being left on read.

• Telegram: The messaging app that promised to revolutionize privacy with its native token.
• Filecoin: The storage solution that thought it could be the Airbnb of data.
• tZero: Overstock’s ambitious venture into the tokenization of securities.

The Uncertain Future

CEO Arthur Hayes doesn’t hold back in expressing concern. He stressed, “It is unclear when, if ever, these deals will ever list on the secondary market,” leaving investors scratching their heads. And just when you thought you’d hit the jackpot!

Buyers Be Wary!

With a statement that could be straight out of a soap opera, Hayes even declared, “Given the large amount of token supply out there, who will buy this s**t?” Seems like he’s not just whispering sweet nothings to his investors.

The Bear Market Blues

The 2018 bear market has not been easy for these ICOs. According to research by Diar, around 70 percent of ICOs are worth less than what they raised. Ouch! Should we start a GoFundMe for those poor investors?

Regulatory Wranglings

Adding to the drama, some ICOs fell foul of regulations, with U.S. watchdogs ordering Paragon and Airfox to repay millions due to unregistered securities. Why can’t they just follow the rules?

A Reckoning in 2019

As we step into 2019, Hayes foreshadows a year of reckoning. Without “accounting tricks” to hide colossal losses, it could get bumpy for many funds. So buckle up, cryptocurrency aficionados — it’s going to be quite a ride!