A Blast from the ICO Bull Run Past Shows These Companies’ CEO Didn’t Tee Up a Token Offer
The year 2017 will forever remain etched in the minds of crypto enthusiasts across the world. For some, it will be a year to reminiscence forever, thanks to the value of Bitcoin going against all odds and shooting by a whopping 1,278%.
For others, however, the year will always remain a cursed one, despite a sudden and almost unprecedented increase in the number of ICOs and utility tokens. Many owners of Blockchain projects, compelled by the craze around cryptos and eager to cash in on the fixation around Initial Coin Offerings, hurriedly created and publicized their ICOs.
Heads of over 90% of the ICOs run away upon making the kill, all at the expense of the foolish and money-hungry investors. The result was heaps and heaps of utility tokens, some worthless and without any use, pumped and dumped in the crypto space. Furthermore, millions of crypto investors are yet to recover from the losses from the scamming, ill-thought ICO projects.
Not Every Head Of Blockchain-Based Project Warmed Up ICOs
At a recently concluded crypto conference dubbed TABConf 2019, three heads of thriving companies gave a vivid and almost unreal account of how they withstood the storm. At the event that took place in Atlanta, Georgia, they gave a first-hand account of how, despite being pressurized by investors, the three stood their ground and never launched utility tokens.
OB1 Was Pressured To Launch An ICO
According to Brian Hoffman, CEO of OB1, their investors started pestering them to consider raising funds the Initial Coin Offering way. Investors of OB1, an OpenBazaar protocol-based firm, are accomplished dignitaries who include Andreessen Horowitz, one of Silicon Valley’s leading venture capitalists, and Union Square Ventures.
Companies on the same scale as OB1, especially Blockstack which realized $50 million and Protocol Labs whose $250 million in token sales, could have pressurized their investors. Yet, as Hoffman states, their company was the only one under Andreessen Horowitz’s portfolio to avoid launching an ICO.
Their refusal, back then, was bizarre since launching ICOs was a fad. But as the same investors would later discover, the CEO was right in his stubbornness. Right now, he says that the investors are glad that the company never bowed to the ICO hype.
BitPay And Edge Too Didn’t Succumb To The Wave Of ICOs
Brian Hoffman, apparently, wasn’t the only CEO fighting the decision that has so far proved calamitous to those who chose it. BitPay’s Stephen Pair admitted facing the same pressure in 2017.
According to him, the company flatly refused to conduct an ICO, despite how it seemed a success back then. The reasons why they chose not to bow to the requests are obvious, albeit some were incredibly complex to explain.
Backing him up, also was Paul Puey, the current CEO of Edge. Paul said that they knew the widespread ICO mania was like a whirlwind that eventually dies off. They, instead, opted to conduct a crowdsale – a more traditional and laid-back form of it.
The reason why Edge opted for a crowdsale is that their model wasn’t fit for an ICO style of funding. Right now, Edge is glad that it escaped a wave which swept the entire industry and its aftermath has left many companies’ image tainted!