Bitcoin’s [BTC] 70% downfall makes nearly 800 cryptocurrencies obsolete
Bitcoin [BTC] holding the top most position in the list of cryptocurrencies is currently experiencing a massive declination in price. With its downfall, other digital currencies are mostly experiencing a downward trend along with the death of many. According to a recent report by BCFocus, Bitcoin [BTC] price hits its lowest mark since November, 2017 followed by other virtual currenies.
In December, 2017 Bitcoin [BTC] witnessed the peak of its valuation by touching the mark of nearly $20,000. However, with the beginning of 2018, the negative trajectory of Bitcoin begun. Currently, the price valuation of Bitcoin [BTC] has declined by 70% of its peak value in 2017. With this, more than 800 digital currencies have become obsolete whose valuation goes below a cent.
The procedure of Initial Coin Offering [ICO] is undertaken for the creation of tokens. However, in some cases, it has been observed that the ICOs have resulted in scams. At times, such ICOs have not turned out into real products. Investors generally take interest in ICOs due to the fact that the tokens are affordable. The investors also find a possibility of receiving bigger returns on the investments in the future times.
The current amount raised in ICOs has significantly risen up from the previous amount in 2017. There have been instances in 2017 when ICOs have raised an amount of nearly $3.8 billion. However, in this current year, the amount has surged up to $11.9 billion.
Even with such a remarkable difference in the raised amount, the projects have faded away since they were scams. A website called Dead Coins enlists all the obsolete digital currencies. It has been estimated that 800 crypto coins or more have become completely dysfunctional.
Despite holding on to its first position, the current market valuation of Bitcoin [BTC] is $6,628 from last year’s record of $20,000. The huge and sudden depreciation of the value of Bitcoin [BTC] has led to the price drop of other cryptocurrencies also.
Present market condition
The gloomy market condition in the crypto domain is again hit by the hacking of two crypto exchanges in South Korea. Investments in ICOs are, indeed, risky ventures and infested with fraudulent activities. However, there are quite a number of advocates who are hopeful about the future of ICOs. For these advocates, ICOs serve as a substitute to initial public offerings.
Nevertheless, the dark times of cryptocurrencies can get over with time. This can be achieved by the rightful measures taken by the regulators.
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