It's becoming harder for ICO's to make money. Projects with no real value & lackluster ideas are being thrown to the wolves in this market. However, this is a good thing. This allows quality projects to receive more capital from investments. Eventually, these garbage "get rich quick" styled projects will cease to exist. We will be left with the main coins in crypto (Bitcoin, Ethereum, XRP, ect) & quality projects that have a utilitarian use.
Last year was the year of riches for early adopters. I watched my crypto portfolio jump 1000% within a few months. You could buy garbage ICO's and make a small fortune due to FOMO. Eventually, this structure of investments imploded, which then leads us to where we are today. The reason I am bringing all of this up, is because projects that don't serve real purposes aren't being invested in. No one wants to buy an investment that people won't ever want to use. The reason companies like Rolex can charge $30,000 a watch, is due to brand recognition & consumers willing to pay hefty prices for their watches. The watches don't require endless amounts of craftsmanship, nor do they require expensive raw materials.
The final piece of the puzzle points to quality projects emerging from this sector. Eventually the funds will bleed dry and only quality projects like Omnity will exist. There has to be a real purpose behind an ICO's "project". If the project exists just to exist, then it's a pointless project that won't make an investor any money. I look for projects in this market that have utility in the real world. Something that I could see people using to better their lives. Projects like Omnity, Nauticus, Binance ect. These projects exist to serve consumers. Projects that exist as cash grabs won't go anywhere in a bear market.
Projects mentioned:
- https://www.omnity.io/about
- https://nauticus.io/
