Ico’s in Recent Times

icos cryptos

Cryptocurrencies have become quite popular with an ever growing number of users or early adopters. This digital currency is offered in many different forms, such as bitcoin, ethereum, litecoin, and numerous other altcoins.

The rise of the cryptocurrency market is conspicuous since a year or two. There are many factors behind this ascent of virtual money. All these factors concertedly have driven the total market capitalization to a higher level. And, this overall market cap continues to grow and thus have exceeded the previous cap of $170 billion to reach a new record high, which is $172.2 billion. This figure reports a surge of 850% as compared to the initial value of cryptocurrency, that is $17.7 billion, at the beginning of this year.

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Reasons behind the accretion of cryptocurrency

The recent as well as the previous increase in these virtual assets have intrigued our minds as to why this is happening or what are the reasons behind this quantum upsurge.

1. Aggressive ICO activity

According to analysts studying this innovative asset class, there are several reasons behind the growth of cryptocurrency. One of the trends that contribute to this is the steady supply of ICO’s or Initial Coin Offerings. These offerings are the initial funds that are raised for a new cryptocurrency venture in order to maintain the interest of all the fund investors.

However, before investing in Bitcoins, cryptocoins, or tokens, you should be aware of all the risks affiliated with these virtual assets, since this market is chiefly unregulated and tentative. This means that you should be ready to lose all of your investment prior to investing in cryptocurrency.

When it comes to figures, firms have raised almost $1.3 billion via ICO’s in the initial half of this year 2017 as reported by a research firm. In fact, FinTech companies have raised a lot of amount through ICO’s in the initial part of 2017 as opposed to the money they raised by way of venture capital investment.

This surely indicates the interest of companies towards this innovative digital currency rather than traditional forms of raising capital, which in turn has driven the cryptocurrency industry to a new high. The chief reason why investors and entrepreneurs have shown great interest toward digital money is since it is quite easy to raise funds through an ICO than other conventional fund raising avenues.

2. Hedge funds

Another contributing factor toward the rise of the crypto market is the escalation of hedge funds focusing on this form of currency. Right now, over 50 hedge funds have their concentration on crypocurrency. And, this number will only aggrandize in future with new funds purchasing cryptocurrency soon after finishing off the legal paperwork, thus advancing the digital asset market.

3. Wider acceptance

The wide adoption of this innovative digital currency is one of the other conducing cues of the rising crypto currency, according to industry analysts. This factor has helped the overall market capitalization of cryptocurrency to ascent over 800% in this year.

ICO’s and hedge funds, together with more and more companies accepting the crypto market, all have their part to play in the advancement of crypto industry. Thus, the cryptocurrency industry is certainly running at a fast pace and if it keeps on running at this speed, it will soon reach more new highs.

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