How Lockdown Affected ICO Projects in 2020Endy Callahan
The COVID-19 pandemic has caused a lot of problems for the world economy and financial institutions. And ICOs did not escape the consequences. Let’s review how some initial coin offerings projects have handled the pressure.
Postponement of initial coin offerings
The Gaming challenge token Decurian has taken the crypto world by storm. Even though it seems that every project right now states that they are different from the rest and makes promises that it cannot keep, Decurian positively surprised even its developers. The token was valued 4 times more than during its ICO release. Companies are called crypto-unicorn, when they hit 1 billion dollars’ valuation mark, while not being listed yet.
Pandemic has slowed down the development scenario for the gaming challenge token. During the period from December 18 to April 1, its price rose by almost 40 times to 215 USD. The team behind it has moved the ICO end date to May 15.
And now the team was forced to change the token launch date to July 1. Founder, Michael Chodorowski commented that the world amidst the COVID-19 pandemic has more important thing to worry about than the initial coin offering of a cryptocurrency. He also said, the team is extremely happy that they have reached their market cap.
Staying right on track
Cointelegraph reports that the pressure we are under right now may force the majority to pay more attention to tokenization. So in turn these trying times will be beneficial for introducing new financial assets. Coronavirus has shined a bright light on imperfections of the global economy. And experts say that tokenization may be a good way for businesses to adjust to the new reality.
A lot of initial coin offerings have stayed on track, according to the statistic provided by Investing.com. Coronavirus has not drastically reshaped roadmap of SMO Coin, BitcoinBlink, Illuminates, Gold Forecasting Placer, Zetanet, ThorChain, Electronig Energy, and others.
ICO scams are on the rise due to coronavirus
Regulators all around the world try to raise awareness about the rising number of scams. In a lot of cases, it is harder to track cryptocurrency and it means that the criminals may get away with fooling innocent people. There are a lot of legitimate platforms that raise money for healthcare and developing products that may ease COVID-19 pandemic. However, a lot of the sites, suggesting purchasing of products that prevent coronavirus are scams. Be careful and pay attention to trusted reviews when you see some platform advertising supposedly new technology and raising funds via initial coin offering. During these difficult times, people may feel desperate but try to keep your head cool to save your money. If the promised returns are too good to be true, maybe the ICO is a scam. And the way it is set up will make it difficult to return money.
Even though the crypto community has faced some hardships along the way, people do not lose their hope to «go to the moon» or their sense of humor. The pandemic has brought an abundance of so-called memecoins. For example, ERC-20 tokens called CoronaVAXcoin (CoVAX20) or Cure Corona (CC19). The market has slowed down but who knows what 2020 will bring us next. Let’s find out and see together.
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