ICO Shines Again: New Opportunities in the Encryption Industry

The development history of the cryptocurrency industry is full of ups and downs. From the early ICO boom to the later venture capital-dominated era, and now to the meme coin frenzy, the market has gone through a complete cycle. However, with the arrival of a new bull market, the ICO model seems to be regaining attention.

The reason why ICOs can return to the center stage is mainly due to the following factors:

1. The convenience brought by technological advancements. Now, through certain frameworks, token issuance and listing can be completed in a few minutes, greatly shortening the time from fundraising to trading.

2. Improvement of liquidity on decentralized trading platforms. Investors can immediately trade newly issued tokens on DEXs like Uniswap.

3. Improvement in blockchain performance. Compared to 2017, the transaction processing capacity of mainstream public chains like Ethereum has increased by several orders of magnitude, which can better support ICO activities.

4. Improvement of user experience. Encryption users are already familiar with the use of tools such as browser wallets, lowering the threshold for participating in ICOs.

5. Changes in investor sentiment. After the disappointment with the venture capital token model, ordinary investors are eager to seize life-changing high return opportunities.

However, the return of ICOs does not mean a repeat of past mistakes. Investors need to remain vigilant about the following situations:

• High valuation, low circulation projects supported by venture capital
• Tokens launched with overestimated valuations on centralized exchanges
• Statements that advocate irrational trading behavior

Despite the risks associated with ICOs, they offer ordinary investors the possibility of high returns. Compared to the astronomical returns that are difficult to achieve under the current venture capital token model, ICOs may reignite excitement in the market.

In the future, we may see more innovative projects obtaining funding through the ICO model. At the same time, investors need to remain rational and recognize that high returns come with high risks. The return of ICOs not only provides project parties with new financing channels but also injects new vitality into the entire encryption industry.