CEO and founder of CoinList, a New York-based ICO-focused platform, Andy Bromberg, commented to Bloomberg on September 17, 2018, about the conditions of ICOs and the market as a whole.
Bromberg expounded on the nascent market, stating while the market is only a about decade old since the release of Bitcoin, altcoins and ICOs are rather new additions. The market has experienced ups and downs with the major drop since its all time high back in December 2017, this is just another swing in the grand scheme of things. This ideology echoes that of Coinbase, when CEO Brian Armstrong told Bloomberg that the market is just going through a series of bubbles and corrections.
To elaborate on the point, Bromberg brought up the example of a young Bitcoin jumping to $30 and then subsequently fell under $10.
According to CoinMarketCap are 1,969 cryptocurrencies active in the market. Bromberg responded to a Bloomberg host about the large figure:
“I don’t think we need that many tokens, I think that this speaks to any new technology — there’s this Cambrian explosion of attention and a lot of them are low-quality, but people invest in them anyway. This year, what we’re seeing is those high-quality projects are making significant gains, Bloomberg actually reported that last month was the worst month for cryptocurrency ICOs in a long time, since 2016 levels.”
With CoinList active in the ICO ecosphere, Bromberg commented that even with a 90% fail rate for ICOs, this is leaving the innovative projects to receive the lion’s share of the billions of dollars in funding. In regards to the scams plaguing the sector, the CoinList CEO indirectly said his job duties is not to tout the ICO market as a whole, but to sort through and choose projects with strong lasting potential and to disregard the unimaginative or scam projects.
Concerning how the dip in the market was affecting CoinList, Bromberg explained:
“So CoinList tends to work with the best digital asset companies to manage their tokens sales, and I think last year we were seeing almost every ICO soaring through the sky on a lot of hype and attention. [But now], a lot more of them are on the ground, like land ducks and penguins [that] can’t make it up into the air… [Still], last year about $6 billion went into ICOs, which is a staggering number, this year, it’s looking at $15 billion so far, and we aren’t even through the year.”
While the CEO of CoinList isn’t alone in his projection of the market and ICOs, all we know now is that the sector is struggling.