There are plenty of buzz around initial coin offerings or ICOs lately, and that’s for good reason as cryptocurrency awareness is on the rise. While the current cryptocurrency landscape in 2018 is in a flux, but in 2017 we have experienced a phenomenal growth in terms of its valuation and awareness.
Saying that cryptocurrencies have skyrocketed in 2017 could be an understatement. A total of $5.6 billion dollars have been raised through the means of ICOs in 2017 alone, and experts are saying that number will rise in 2018.
Meanwhile in the conventional tech IPO scene, we are seeing signs of growth and possible new kind of rejuvenation. To name a few companies that possibly be eyeing an IPO debut in 2018 or even possibly in the 2019 horizon: Dropbox, Airbnb, Docusign, Xiaomi and Spotify, just to name a few.
These are just the popular ones that gathered some mindshare in consumers mind, while others that are lesser known to the general public are surely growing their appetite as well.
As compared to the previous tech bubble, the current batch of tech companies are staying private longer. While many have already generated billions in revenue, these companies prefer to stay private longer to avoid the downside of being public such as reporting quarterly earnings and some might feel that it would hinder their long-term growth strategies.
Also there is a new way for early investors or venture capitalists to exit some of their shares in the companies by selling through secondary markets without going public. While there are many alternatives to keep on building the company without going public, but the ultimate goal in terms of its investor exit strategy for a large growing company is to hit the IPO milestone.
A lot has changed last year and the mindset has change a lot as well. The nature of ICOs that enable new companies to raise money is an eye opening feast for lots of new investors, startups and governments as well. When more people are being pulled into participating in ICOs, it’s also a sign that investors are more comfortable with risking their money.
While ICOs have its high risk attributes, bringing back the trend of conventional tech IPOs will serve as a more balanced investment strategy for those investors who already have their feet wet in previous ICOs. To some, it might be the preferred investment with lower risk as compared to the nature of ICOs is being structured.
Another company will capture much interest is Telegram, it will be the poster boy for conventional tech company or popular app that will use ICO to raise capital and provide an IPO like strategy for its own investors. While this might look amazing if it’s executed successfully, but in the long term it might pose regulatory or even legal challenges. Therefore Telegram is definitely getting enough special attention from other tech companies and startups if they should follow suit if future challenges could be resolved.
Disclaimer: This article does not provide financial advice, and it’s purely intended for your infotainment and entertainment. Please seek financial professionals before making any investment decision. All rights reserved.
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This article has been written by Darren Lee, a blockchain/crypto enthusiast and the developer of Crypto Bird, a free iOS app that helps you track Crypto influencers and topics. Follow Darren @darrenlee on Twitter for latest updates.