ICOs: Self-Occupation within the Crypto Bubble

ICOs: Self-Occupation within the Crypto Bubble

Virtual Currencies

Initial Coin Offerings (ICO) in the areas of blockchains and crypto-currencies rapidly replaced “classic” financial methods in 2017. But what are these ICOs actually about? LSP Digital analyzed the top 5 current ICO categories. The analysis shows that a considerable share is made up of self-occupation, which means projects where the ICO aim at, in turn, profiting directly or indirectly from speculation, trade or financing with crypto-currencies and crypto-tokens.

Details

  • Author: Florian Hollender
  • Appeared: 30.11.2017
  • Category: Virtual Currencies

Unfortunately, this image goes well with the current warning from the BaFIN (Federal Financial Supervisory Authority) on the subject of ICO. By no means is there actually a solid undertaking behind these projects which could attract interested parties and financial resources outside of the crypto bubble. Those who invest their money in such ICOs are significantly increasing the already existing risk of total loss once more. It is to be assumed that only the bursting of the “crypto bubble” – especially that of big crypto-currencies such as Bitcoin, Ethereum and Litecoin, where ratings keep climbing because of speculations – will also clear the ICO market from such projects.

Text and infographic by Florian Hollender (LSP Digital), translation by Evgeniya Koptyug

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