Could Increasing Costs Make ICOs Too Expensive for Startups?

Neutral 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.

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.

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.

11/15/2018 / 16:30:26 Source: livebitcoinnews

Altcoin News | Blockchain Technology | ICO | News | gaming | Gaming Platform | SEC | token | | ICO|BTC|Market|Regulation
BTC
1 BTC=$3,190.94
XRP
1 XRP=$0.2847
ETH
1 ETH=$83.15
XUC
1 XUC=$2.10
EOS
1 EOS=$1.79
BCH
1 BCH=$77.55

News Feed 50

Newsbtc Neutral - Teen Bitcoin Millionaire: “Bitcoin is Pretty Much Dead” read more.
12/14/2018 / 21:30:57
Ccn Neutral - Bitcoin Price Will Soar over Next Three Years: Circle CEO Jeremy Allaire read more.
12/14/2018 / 21:10:39
Bitcoinist Neutral - 25% of Pantera Capital ICO Projects May Have to Refund Investors read more.
12/14/2018 / 21:00:13
Cointelegraph Neutral - European Parliament Calls for Increased Blockchain Adoption in Trade read more.
12/14/2018 / 20:58:00
Bitcoin.Com Neutral - SEC Chair ‘Optimistic’ DLT and Crypto Will Drive Investment Opportunities read more.
12/14/2018 / 20:55:37
Ethnews.Com Neutral - European Parliament Looks To Blockchain Adoption In Trade Policies read more.
12/14/2018 / 20:16:49
Cointelegraph Neutral - #Bitcoin, Ripple, Ethereum, Stellar, EOS, Bitcoin Cash, Litecoin, Bitcoin SV, TRON, Cardano: Price Analysis, Dec. 14 read more.
12/14/2018 / 20:05:00
Ccn Neutral - Robinhood Didn’t Consult Regulators on New Checking & Savings Account Products read more.
12/14/2018 / 20:03:47
Cryptoglobe Neutral - Crypto Exchange Binance Expands Its Startup Incubator to New Cities read more.
12/14/2018 / 20:00:46
Newsbtc Neutral - Bakkt and Intercontinental Exchange CEOs Weigh in About Bakkt read more.
12/14/2018 / 20:00:42
Themerkle Neutral - Dogecoin Price Remains at $0.002 as Market Cap top 20 Looms read more.
12/14/2018 / 19:49:38
Ccn Neutral - Bahrain Central Bank Publishes Draft Cryptocurrency Regulations read more.
12/14/2018 / 19:25:21
Cryptoglobe Neutral - Russian Deputy PM Says Crypto Price Downturns Justifies Cautious Regulation read more.
12/14/2018 / 19:00:00
Ethnews.Com Positive - 0x Announces Token Grant Program Within The Snowstorm Of Crypto Winter read more.
12/14/2018 / 18:47:51
Bitcoinmagazine Neutral - Op Ed: Bitcoin Is a Declaration of Our Monetary Independence read more.
12/14/2018 / 18:43:26
Cryptoinsider Neutral - Part 2: Ethereum vs NEO – Which blockchain has better scalability and security? read more.
12/14/2018 / 18:43:14
Cryptopotato Neutral - Confirmed: Bakkt Futures to Launch on January 24, Presents Milestones Ahead read more.
12/14/2018 / 18:41:14
Ccn Neutral - Binance Adds USDC Trading Pairs – Stellar and Ripple Represented read more.
12/14/2018 / 18:40:14
Newsbtc Neutral - Bitcoin Sets Fresh 2018 Low at $3,200, Altcoins Plunge read more.
12/14/2018 / 18:30:15
Cointelegraph Neutral - Brazilian Premier League Soccer Club Launches Crypto 'Fan Tokens' read more.
12/14/2018 / 18:30:00
Coindesk Positive - This Binance-Backed Crypto Startup Wants to Anonymize Everything read more.
12/14/2018 / 18:00:26
Bitcoin.Com Neutral - U.K. Cryptocurrency Exchange Cubits Shuts Down After $33M Scam read more.
12/14/2018 / 18:00:13
Cryptoglobe Neutral - Circle CEO: Cryptographic Tokens Will Represent Every Form of Financial Asset read more.
12/14/2018 / 17:50:55
Coinspeaker Neutral - Russian Data and Mining Centre Redstone to Start Operations in June 2019 read more.
12/14/2018 / 17:42:59
Trustnodes Neutral - Ethereum Reaches 50 Million Unique Addresses read more.
12/14/2018 / 17:41:27
Ccn Neutral - Bitcoin Cash Price Continues to Crater as Fork Aftertaste Lingers read more.
12/14/2018 / 17:37:11
Cryptoglobe Negative - Bitcoin Hits 15-Month Low as Crypto Market Threatens to Drop Below $100 Billion read more.
12/14/2018 / 17:30:41
Coinspeaker Neutral - Blockchain-Based Asset Management Platform Membrana Announces Token Sale Event read more.
12/14/2018 / 17:30:22
Cointelegraph Neutral - Bahrain’s Central Bank Publishes Draft Regulations on Crypto Assets read more.
12/14/2018 / 17:15:00
Coinspeaker Neutral - Decentralized Financial Service Platform WORBLI Launches Token ShareDrop Event read more.
12/14/2018 / 17:14:24
Coinnounce Neutral - Do We Really Want To Tokenize Everything? And Can We? read more.
12/14/2018 / 17:05:48
Cryptoglobe Neutral - US Government Advises Bitcoin Bomb Threat Victims to Ignore Ransom, Inform the FBI read more.
12/14/2018 / 17:00:36
Newsbtc Neutral - CoinShares Exec: China Crypto Plan Could Make Dystopian Future a Reality read more.
12/14/2018 / 17:00:27
Bitcoinist Neutral - To The Moon! Bitcoin Space Travel Gets Closer As Virgin Galactic Takes Flight read more.
12/14/2018 / 17:00:13
Coinnounce Negative - Bitcoin Cash falling to 0? Is BCH worthless? read more.
12/14/2018 / 16:53:37
Ccn Neutral - Newsflash: Bitcoin Price Slinks Below $3,175 for First Time in 2018 read more.
12/14/2018 / 16:37:02
Coindesk Neutral - Ethereum Chat Startup Status Lays Off 25% of Staff read more.
12/14/2018 / 16:20:53
Cryptonewsreview Neutral - Whatever happened to Burger King’s own official cryptocurrency? read more.
12/14/2018 / 16:09:34
Bitcoin.Com Negative - Markets Update: Bears Continue to Drag Cryptocurrency Prices Down read more.
12/14/2018 / 16:00:09
Cryptoglobe Neutral - WallCoin: US Lawmaker Recommends Using Cryptocurrency to Fund Trump's Mexico Border Wall read more.
12/14/2018 / 16:00:00
Newsbtc Neutral - Crypto ICO Price Continues to Fall, Likely Due to Growing Regulatory Pressure read more.
12/14/2018 / 15:45:12
Blokt Neutral - Ripples’ XRP Trades Near Bottom of Range – New 2018 Low Upcoming? read more.
12/14/2018 / 15:39:46
Cryptoglobe Neutral - #Ethereum (ETH) Price Analysis – December 14 read more.
12/14/2018 / 15:30:00
Cryptoglobe Neutral - #Bitcoin (BTC) Price Analysis – December 14 read more.
12/14/2018 / 15:30:00
Ccn Neutral - Porsche Arranges $170m Loan Using BBVA’s Blockchain Platform read more.
12/14/2018 / 15:23:44
Trustnodes Neutral - Bitcoin Cash Falls Below Ethereum’s Price for the First Time, is This the End For BCH? read more.
12/14/2018 / 15:22:40
Cointelegraph Neutral - US Credit Union Blockchain Consortium Joins R3's Global Ecosystem read more.
12/14/2018 / 15:22:00
Blokt Neutral - Bitcoin [BTC] Breaks Below Key Support Level Creating New 2018 Low read more.
12/14/2018 / 15:14:13
Coindesk Neutral - EU Parliament Calls for Action on Blockchain Adoption in Trade read more.
12/14/2018 / 15:00:59
Coinspeaker Neutral - TransferGo’s Series B Funding Round Acquires $17.6 Million read more.
12/14/2018 / 14:53:31
Negative
4.4%
Neutral
94.4%
Positive
1.0%
Mixed
0.2%

Latest comments:

4 min
Hey Sam, how is it going? But I must explain to you how all this mistaken idea of denouncing of a pleasure and praising pain was born
3 min
Pretty good. Doing my homework.. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because
2 min
Any chance to go out? To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage
2 min
.. Maybe 40-50 mins. I don't know exactly. On the other hand, we denounce with righteous indignation and dislike men who are so beguiled
1 min
Anyway sounds great! These cases are perfectly simple and easy to distinguish.