Could Increasing Costs Make ICOs Too Expensive for Startups?

The co-founder of a successful ICO-funded platform believes that the market is changing and it’s becoming more and more expensive for startups to launch ICOs.


Last year saw the crypto industry filled with drama as prices soared and mad rushes ensued as people tried to get a piece of that FOMO-inducing Bitcoin action. It also saw a lot of startups turn to ICOs as a way to raise the capital they needed for their businesses. Tony Pearce’s gaming platform was one of those involved in the ICO revolution.

Are ICOs becoming too expensive?

The Rising Cost of ICOs

According to GamesIndustry.biz, Pearce is one of the co-founders of Reality Gaming Group, which is the studio responsible for the mobile AR shooter game, Reality Clash. The latter was made possible through an ICO that generated $3.5 million. However, while Pearce’s venture achieved success, he warns that as the industry continues to evolve, other startups might not experience the same, relatively inexpensive, joy. He explained:

It’s amazing what’s happened in the last year – I can’t believe how much has changed. We spent hardly anything when we did our ICO because we were an interesting project. At the time, the only ICOs that were happening were big blockchain enterprise projects and big tech stuff. We came along with this cool, sexy game and actually stood out from the crowd.

Pearce added that while initially eliciting excitement from potential investors, gaming ICOs may have lost some of their luster. He believes that ICO hopefuls today would actually need to have some of their own capital before they even think of using this decentralized funding model. He says:

Twelve months on, if we were to do the same thing again, it would cost us £200,000 to £300,000. The cost of just being listed on the bigger ICO listing sites, the cost of marketing through those sites, has just gone through the roof. If you were a brand new ICO, the cost of launching right now… I’ve heard rumours that it’s around the £500,000 mark by the time you’ve got lawyers in, sorted the marketing campaign out – it’s not for start-ups anymore. We were a total start-up, but if we were to do this now, I don’t think we could have afforded to.

ICO scams

Weeding Through the Scams

However, for the public, it’s not just about finding that one exciting project to invest in. It’s also about not falling victim to fraudulent ICOs, something that the U.S. Securities and Exchange Commission (SEC) appears to be assisting in with their Operation Cryptosweep.

In addition, success isn’t guaranteed just because funds were raised. Live Bitcoin News reported that a study shows that out of all of the ICOs listed last year, 86% of the tokens are actually trading below their initial listing price while 30% have lost almost all of their value.

However, it is still a multi-billion-dollar industry, raising over $15 billion in the first six months of this year alone.

Do you agree with Pearce? In this age of financial revolution, do you still need to spend money to make money? Let us know in the comments below!


Images courtesy of Shutterstock.

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Markets Update: All Eyes on Bitcoin Cash Prices Before the Pending Fork

Markets Update: All Eyes on Bitcoin Cash Prices Before the Pending Fork

Market Updates

Since our last markets update five days ago, a lot has changed as a good chunk of the top cryptocurrency markets have dipped in value over the last three and a half days. Bitcoin cash markets touched a high of $638 on Wednesday, Nov. 7, but now prices are hovering around $544 per BCH on Sunday, Nov. 11.

Also read: Bitcoin Cash Miners Break Records Processing Multiple 32 MB Blocks

Digital Assets See Some Slight Losses Over the Last Three Days

Cryptocurrency markets have had an interesting week after a long period of boring price action and stability. Last week bitcoin cash markets lead the pack out of all 2000+ digital assets, climbing over 51% in value and touching a high of $638 per coin. Digital asset markets, in general, have all seen some slight losses as the top ten cryptocurrencies are down 1-3% except for stellar, cardano and the stablecoin tether. The entire market valuation of the whole crypto-economy is worth $215.9 billion and there’s been $11.5 billion in global trades over the last 24 hours.

Markets Update: All Eyes on Bitcoin Cash Prices Before the Pending ForkThe top 10 cryptocurrencies on Nov. 10, 2018, at 10:00 a.m. EST.

Bitcoin core (BTC) prices are hovering around $6,406 per coin and there’s around $3.7 billion in global BTC trade volume today. Following the BTC action, ethereum (ETH) prices are around $211 per ETH and the cryptocurrency is down 0.3% this weekend. Ripple (XRP) is down 0.9% today and each XRP is being swapped for $0.50 per token. Lastly, eos (EOS) has been officially bumped out of the fifth largest market capitalization and stellar (XLM) has taken its place. Stellar is currently trading for $0.26 per token and markets are up this Sunday 4.5%.

Bitcoin Cash (BCH) Market Action

Markets Update: All Eyes on Bitcoin Cash Prices Before the Pending ForkThe fourth largest market capitalization held by bitcoin cash (BCH) is down 0.5% over the last 24 hours. Data stemming from the last seven days shows BCH is down 1.7% overall for the week. Currently, BCH is trading at an average of $544 per coin with a market valuation of about $9.4 billion. The last 24 hours of trade volume shows BCH markets swapped $641 million this weekend. The top exchanges swapping the most BCH today include Lbank, Okex, Hitbtc, Binance, and Huobi Pro. The trading pairs today dominating BCH markets include USDT (35.2%), BTC (35%), ETH (10.2%), USD (7.7%), and KRW (3.1%).

Markets Update: All Eyes on Bitcoin Cash Prices Before the Pending ForkBitcoin cash (BCH) daily. Nov. 11, 2018.

BCH/USD Technical Indicators

Looking at the 4-hour charts for BCH/USD on both Bitfinex and Bitstamp shows BCH bears may be feeling some exhaustion in the short term going forward. Currently, there looks like a trend shift is in the cards as the 100 Simple Moving Average (SMA) has crossed above the long-term 200 SMA. This indication is positive for the bulls as the path towards the least resistance is essentially the upside. The Relative Strength Index (RSI) shows things are meandering in the middle (-44.02) but definitely closer to oversold regions.

Markets Update: All Eyes on Bitcoin Cash Prices Before the Pending ForkBCH/USD Bitstamp 4-hour at 10:15 a.m. EST. Nov. 11, 2018.

The stochastic oscillator indicates a similar reading and the MACd also shows there’s currently room for improvement going forward. Order books show a similar forecast too as bulls need to muster enough strength past the $566 region to gain a lot more momentum, and there will be another pitstop at the $600 zone. On the backside, there is plenty of foundational support at the time of publication between the current vantage point and $495.

Markets Update: All Eyes on Bitcoin Cash Prices Before the Pending ForkBCH/USD Bitfinex 4-hour at 10:00 a.m. EST. Nov. 11, 2018.

The Verdict: Traders Assume the Pending Fork Will Affect Markets Before, During, and After the Fork

Most traders seem positive that the price of BCH will trend higher as the fork approaches due to the memories of prior forks in the past. The 100-day average shows there is a lot of room for improvement over the next four days. Furthermore, BCH/USD short positions are at an all-time high this weekend which means a good majority of traders are betting against a rise.

Markets Update: All Eyes on Bitcoin Cash Prices Before the Pending ForkBCH/USD Shorts on Nov. 11, 2018.

However, others believe that these traders are setting themselves up for a “big squeeze” and expect prices to spike unexpectedly. With the fork approaching and especially the contentious nature surrounding it, it will likely drive markets in certain directions before, during, and after the network changes. Per usual in crypto-land, bitcoin traders are expecting the unexpected to take place next week and most are just crossing their fingers hoping they chose their positions correctly.    

Where do you see the price of bitcoin cash and other coins headed from here? Let us know in the comments section below.

Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”


Images via Shutterstock, Trading View, and Satoshi Pulse.


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Blockchain-based Irish Platform Wants to Ensure that Airline Passengers Get Compensated

A start-up in Ireland is hoping to transform the relationship between airlines and their passengers through their blockchain-based app.


Traveling by plane is all fun and games until your flight gets canceled or delayed. Depending on the airline, affected passengers may also struggle to get their refund or even notification that their flight won’t be on time. An Irish start-up hopes to solve both of these issues through blockchain technology and virtual currencies.

Blockchain and Tokens to Make a Difference

According to the Irish Times, the Travacoin app will not only allow passengers to be notified as soon as there is a change in the flight plan but will also assist in expediting compensation, in the form of tokens, if they require it. These tokens, in turn, can be used as a form of payment at stores or even hotels in and around the airport.

The founder of the platform, Brian Whelan, may not have any disruptive industry experience but he does have plenty of aviation industry knowledge. He discussed what impact his app could have on customer satisfaction:

Airlines could contact passengers and inform them that they have both good and bad news. The bad news is the flight is delayed for a few hours but the good news is that we’re going to give you a couple of hundred euros in tokens right now. The result for passengers is that don’t have to fight with airlines to get compensation. Furthermore, they could also be offered discounts by other partners to encourage them to spend those tokens in or around the airport.

Whelan has previously worked at companies that assisted affected passengers in obtaining any refunds, taxes or other types of compensation that were due to them because of previously canceled or delayed flights.

While no company wants to voluntarily part with their cash, Whelan believes that due to consumer awareness, airlines will soon be forced to give their customers what’s due to them. He explained:

Awareness of passengers’ rights has grown from less than 1 percent in 2008 to about 10 percent, according to the European Consumer Centre. This has resulted in real payouts, which hurt airlines’ balance sheets.

Blockchain

Canvassing for Contributions

Even so, Whelan’s initiative received recognition at the 2016 Passenger Innovation Awards at the International Air Transport Association (IATA) World Passenger Symposium. The founder then went on to develop a minimum viable product (MVP) but has bigger plans. Whelan is currently courting companies to invest in his platform in order to develop a comprehensive version of the app that can, hopefully, be used by the aviation industry. However, innovation and growth don’t come cheap. Whelan is hoping to raise about $1.7 million to realize his dream.

He touched on how his completed app could impact the industry:

Our selling point for would-be investors is that this business plan works not just for flight disruption but far beyond this. If we can make it work for compensating passengers though we can then look at rolling it across the aviation ecosystem.

Blockchain is no stranger to the aviation industry. Live Bitcoin News has previously reported that many airports and airlines are looking at the technology has a solution to streamlining certain processes.

Do you think that Travacoin has a good idea? Will airlines come on board with this initiative? Let us know in the comments below!


Images courtesy of Pixabay and Shutterstock.

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