Receive all Cointelegraph news immediately in Telegram. JOIN × News Bitcoin News Ethereum News Altcoin News Blockchain News Regulation Scams Guides & Analytics Bitcoin Bitcoin101 Price Index Price Analysis Ethereum Ethereum101 Price Index Price Analysis Events BlockShow 2017 Helsinki 2016 Events Events News Explained ICO Calendar Press Releases Submit a post Submit press release Events About Us Catalog Advertise Franchise Join Us The Cointelegraphfuture of money Toggle navigation Submit a post Submit press release News Bitcoin News Ethereum News Altcoin News Blockchain News Regulation Scams Press Releases Guides & Analytics Bitcoin Bitcoin101 Price Index Price Analysis Ethereum Ethereum101 Price Index Price Analysis Press Releases Events BlockShow 2017 Helsinki 2016 Events Events News Press Releases Explained ICO Calendar Advertise 15 MIN AGO By Olusegun Ogundeji ICOs Will Go on Despite Ethereum Price Fall and Uncertainty Blockchain-based startups go ahead with ICO plans despite top digital currencies hanging on new lows that could last until August, when a split of the Bitcoin network would have been confirmed or forgone 371 Total views 13 Total shares Genuine Blockchain-based startups with potential will do well in the long term despite the reducing value of top cryptocurrencies especially ETH-based ERC20 tokens which are mostly used during Initial Coin Offerings. The projected cap for startups running crowdsales currently – or those that are about to start – have been affected by the fear and panic permeating the entire crypto space since the news of a pending scalability issue that is threatening to split the top currency Bitcoin into two. “Most ICOs need funding because they need to spend fiat money” Normally, all new startups that have raised funds through ICOs need cash at some point thus having the need to sell into the market. Some other reasons such as the time it takes for these projects to spend capital on developing what they had promised and the recycling of investments into new ICOs by traders thus dumping older ones have contributed to the drop in the price of top currencies like ETH. With the new lows looking to stay until the end of July when a split would have been confirmed, startups on the about-to-launch-an-ICO list do not seem perturbed by the situation as most of them have continued with their plans unhindered. “It will affect how much overall money is invested in ICOs overall, so the good ones will still get funded but fewer bad ones,” says George Popescu of Lampix. “Unfortunately, most ICOs need funding because they need to spend fiat money. So, the need doesn't change: an engineer’s salary is about the same regardless of the ETH exchange price.” The co-founder of a would-be PayPal rival Monetha Justas Pikelis, shares a similar view that the situation is not likely to affect ICOs tremendously. Pikelis says: “The price may rise and it may fall, but the strongest ICOs will still raise money because that is what is needed for the Ethereum economy to rise.” Popescu is confident that Ethereum is up to the task saying to Cointelegraph: “One should look at ETH being up 1800 percent and not down 50 percent as that is the real story here. Nobody believed that ETH will find steady state at the top value of course. But now that ETH price has stabilized, ICOs are likely the more reliable source to see a nice return on an investment into an early stage company.” Diversifying ICO assets is important Maximilian Power from Brickblock is of the view that volatility within crypto is not a recent problem, hence he hopes that all startups that have had an ICO diversified a certain percentage of their assets early enough to provide some form of a hedge against the volatility. “Typically the volatility around gold is circa 1.2 percent and the volatility around BTC for 30 days is circa 3.19 percent and 60 days around 4.39 percent,” he says. “As we see a gradual trend upwards across investments into digital current, I also expect to see a lower volatility in the longer term – which is directly proportional to the upward trend and volume of overall global investment.” “For ICOs which are about to start, the crash or market correction could in the short term be perceived as harmful since investments will decrease,” Power concludes. “Nevertheless, overall there is a constantly upward trend and the markets believe this recent correction is a very good and healthy development.” Though the recent correction may deter some investors from both ICO and potentially Ethereum in the short term, the level of support for recent ICOs has certainly been beyond expectation and reasonable estimates. This has led to calls for a tightening of controls more so as some of the projects received unproportionate investments often without a promising product or a proven team. Ethereum News ICO Ethereum Price Markets George Popescu PayPal Monetha Investments Comments Hide Comments Hottest Bitcoin News Daily For updates and exclusive offers, enter your e-mail below. Cointelegraph News Top News Recent Editor Recommends Buckle Up: Bitcoin Price Heads For Below $2,000 As August 1 Nears 46982 | 35 Tezos $232 Mln ICO Sparks Fresh Fears For Ethereum Sell-Off 43630 | 11 Ari Paul, Tuur Demeester ‘Look Forward’ To Up To $1k Bitcoin Fees 41526 | 12 Ethereum Price Analysis: July 4 – July 11 31724 | 9 The Brief History of Bubbles 29107 | 15 Micropayment Company Ditches “Outdated Bitcoin” For IoT Technology 1652 | 2 Blockstream Meets BitTorrent: Lightning Micropayments Suggested to CEO Cohen 2170 McAfee Stakes His Name, $10 Mln On Bitcoin Split 4312 | 4 Petya’s Ransom Money Tracked Through Blockchain: Image 3430 Vice President of Marketing from Wargaming.net Joins SkinCoin’s Advisory Board 103 How Bots And Black Marketers Are Influencing Bitcoin Price, Altcoins Value 20669 | 7 Startup Darling EOS Cashes In Millions Of ETH As ICO Scorn Continues 22471 | 14 Investors are Comfortable With Bitcoin, Ethereum: Hong Kong Experts 10338 | 2 Stop Trying To Kill My ICO: Nick Ayton 12720 | 4 Five Big Businesses Leading Bitcoin Charge 19527 Hottest Bitcoin News Daily ×Close Hottest Bitcoin News Daily For updates and exclusive offers, enter your e-mail below. ×Close Registration Username * First Name Last Name Email * Password * Repeat Password * You registration completed successfully. Confirmation email sent to email address provided. Sign up Already have an account? Log in here ×Close Login Email * Password * Twitter Facebook Log in with Facebook! I forgot my password Login Don’t have an account yet? Sign up About us The Cointelegraph covers Fintech, Blockchain and Bitcoin bringing you the latest news and analyses on the future of money. Site map Catalog Advertise Franchise About us Projects Join Us Events International Sites Bitcoin USA Bitcoin Brasil Bitcoin Slovenia Bitcoin Spain Bitcoin Serbia Bitcoin Japan Franchise Information Terms of services and Privacy policy © Cointelegraph 2013-2017
