Will an ICO glut cause a collapse reminiscent of the 80's video game crash?
It seems like just about every day, there is a new ICO token on sale in the crypto market.
According to icodaily.net, for example, more than 20 ICO's are launching on December 1 alone! This is getting a little silly.
It reminds me of the video game boom of the early 80's (yeah, I'm that old) when everyone was making a crappy console along with horrible games that took three to four weeks to develop before being dumped in department stores everywhere, directly into bargain bins. The most famous and ill-fated among these was the classically terrible movie tie-in Atari 2600 game, E.T. - widely considered the worst video game of all time. It was such a failure that most of the millions of game cartridges were buried in the New Mexico desert (ironically, they are quite collectable now!).
Is the same thing going to happen in the cryptocurrency market? 100's of new ICO's jumping on the crypto bandwagon might just bring the old wagon to a screeching halt, collapsing under its own weight.
Now, that's not to say that all ICO's will fail. But many, many ICO's will indeed fail. Much like the dotcom boom of the 90's, everyone and their dog has an ICO now (not a bad name for an ICO - "Everyone and their... doge?"...hmmm). Many of these coins are indeed shitcoins and will not last past the first few weeks of existence.
But a few will rise to success. It's easy to look back on the video game implosion of the 80's and forget about companies like Nintendo that singlehandedly resurrected the console industry a couple years later. It's easy to overlook the huge corporations like Google and Amazon that survived the mass devastation of the dotcom bust, and are now behemoths of the internet economy.
There will be big success stories of companies that become household names, names that will become part of the new economic paradigm that will develop through this shift. The explosion of ICO's is simply an indicator of the immaturity of this emerging market. It is in its infancy and, therefore, has a great deal of room for growth. But it's going to be a wild ride. It's early days.
The trick is to pick the winners. Easier said than done. Personally, I'd stick with a few of the big names, but do your own research and, who knows? Maybe you will buy the next Amazon for a few cents.
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sources:
https://icodaily.net/
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