Initial Coin Offerings (ICO’s) peaked in the market in 2017 when they raised funds worth several billions of dollars through different projects. Early investors made substantial gains. There were also reports of how some dubious investors cheated gullible investors affecting the credibility of this easy and efficient fundraising mechanism.
Due to the severe economic crisis caused by the global coronavirus pandemic, investment in ICO is seen as an effective hedging tool against a market downturn and inflation.
Despite extreme market volatility, digital currencies are generally high risk-reward investments offering more returns than other traditional assets like gold, real estate, and financial stocks. Bitcoin crossed the $41000 mark recently due to huge demand from institutional investors looking to diversify their portfolios.
