Over the years since the digital age started, many cryptocurrencies have been created, and many ICOs have succeeded tremendously. Take a look at these examples. Bancor, an Ethereum based company was able to raise $153 million in just 3 hours! BAT was able to raise $35 million in 30 seconds. Yes, $35 million in just 3 seconds! Then there was UET, which was able to raise $40,000 in just 3 days. It’s mind-blowing, indeed! ICOs have changed the financial architecture in more ways than one. In 2017 alone, they have raised over $1 billion. But the sad truth is that among thousands of cryptocurrencies created, 90% of them have failed. Why? Because the successes of those ICOs have become the main attraction for many scammers. The UET mentioned above is a clear example of one.
UET actually stands for Useless Ethereum Token, which sole purpose is so that you can hold it and transfer it, that’s it! It’s a joke token intended to see what happens if an ICO is conducted without a product. The anonymous creator who goes only by UET CEO told the New York Observer himself that he made an ICO without a product just to see what happened. He believes that people didn’t really care about the product. That they cared only about spending a little bit of money, watching a chart, then withdrawing some more money. True enough, investors have somewhat got a blind eye on this, and the ICO raised $40,000 in 3 days. Unbelievable but true! With all these in the back of our minds, let’s take a look at the sad truth why most ICOs fail.
Anyone can come up with an ICO and raise money for their concept and not a finished product. Most of these ICOs raised money first when all they had was just the idea, and it would still take them a very long time before a product finishes if it would even finish. Unfortunately, most of these concepts did not end up finishing a product, hence, a failure. What happened to the investors’ money is self-explanatory. This is perhaps the biggest reason why most ICOs fail and why many investors fail too. These are people who have little to zero ideas on how the blockchain works. They have money, and they invest it in a cryptocurrency, thinking that they will surely earn a few bucks or more. On the other hand, the developers have merely focused on the cryptography idea, but never the economics. Without a sustainable supply of the cryptocurrency product, it will not succeed, more so when the product is not available at all.
Therefore, an ICO must have a finished product already before the campaign even begins. A great example of this is an upcoming ICO for Virie coins. The developers have created Virie Market, a robust blockchain product, using their own finances first After years of investments, a prototype, revisions, closed-circuit testing, and more revisions, they now have a finished product that's ready for everyone. Virie coins (VRE) is the market’s native coin and is exchangeable for everything. Using a hybrid protocol of Proof of Stake (PoS) and Proof of Work (PoW), the coins multiply on its own, ensuring that there is a sustainable supply in the market. The creators of the Virie Market did not only keep cryptography in mind, but they also made sure that the economics are also well taken care of. They will be launching its ICO very soon so, watch out for it. Meantime, download its most-user friendly platform here and see it for yourself.