Ethereum World News recently posted that initial coin offerings (ICOs) have surpassed $1 billion. Recent offerings including EOS, Bancor, and Tezos. This is a mammoth achievement and quick gains have been made by investors.
The campaigns launched by Bancor and Tezos have collectively raised more than $559 million in funding. It is being reported that the US SEC is also investigation certain initial coin offerings. It is possible that the ICO market is reaching a bubble. If this is the case, investors may find little liquidity in most of these ICOs. In the past certain cryptos have essentially been valued at negligible amounts post a hack or other security concerns in the network. However, the prime driver of ICOs value remains the acceptance of the same by main stream companies. Once any main stream known company agrees or even contemplates to use a new crypto, the value rises almost instantaneously, at times giving more than a hundred percent return within a span of a few days.
For the time being, demand for ICOs is increasing every day. As this happens, Ethereum is experiencing pressure to scale its platform in order to accommodate the influx of new users.
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