Crypto domains may be hot, but ICOs sure aren’t any more

Lately crypto has been back in the headlines in the domain name world as the sale of Crypto.com for a reported $12M is generating a lot of buzz about crypto-related domain names. What I think is interesting about this particular sale is just how powerful this word has become. Think about it, of the over 1,500 different cryptocurrencies, 99% could die and this domain would still be relevant. In short – it’s a monster.

What isn’t quite as big of a deal is ICOs, which stands for initial coin offering, and I recently read a pretty shocking statistic. Over 50% of ICOs actually go bust within four months of their token sale taking place.

About 56 percent of crypto startups that raise money through token sales die within four months of their initial coin offerings. (Source – Bloomberg)

Yikes! That’s a scary number, and in my opinion probably a good enough reason for domain investors to not go nuts registering domains related to a specific token that is doing an ICO since it might not be around for very long.

That being said, let’s not confuse ICOs with cryptocurrencies that have already stood the test of time like Ether (often referred to as Ethereum), Litecoin, Monero, and a handful of others. For the most part I’m staying out of the crypto-related domain space outside of a handful of domains that I’ve had for a while now.

While I’ve heard a lot of people say that crypto is dying or even pronouncing it dead, I think that’s pretty far from reality. But numbers don’t lie and I do think it’s fair to say that the ICO craze is dying, which IMO is probably a very good thing for all of us.

What do you think? I want to hear from you, comment and let your voice be heard!

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{ 7 comments… add one }

  • Snoopy July 9, 2018, 8:01 pm

    “About 56 percent of crypto startups that raise money through token sales die within four months of their initial coin offerings.”

    Does that number include the one that are fraud? A lot just take the money then deactivate the website (i.e. the never had any genuine plans beyond the fake ICO site). I’m curious what this number includes.

    My opinion is that I wouldn’t read much into the crypto.com until the sale is actually verified, personally I’d be surprised if that happens because to to me the whole thing seems NQR. The domain industry seems to forget the vetting process when a good quality domain sells for a lot of money, people want the news to be true. Good example is fund.com supposedly selling for $10 million years ago, the industry lapped it up.

    Reply
  • Fuadiansyah July 9, 2018, 8:08 pm

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    • Morgan July 9, 2018, 8:10 pm

      @Fuadiansyah – sure but raising 137 Billion only to lose half of that in the first four months doesn’t sound like it’s a model that’s really working does it?

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      • Fuadiansyah July 9, 2018, 8:23 pm

        It does at the moment, but I think the ICO platform itself (Ethereum, NEO, Qtum, Cardano, EOS, etc) is on their way to make a better model. Especially Cardano which come up with treasury model and other solutions to make the crowdfunding lean toward more sustainable business model in the future. It’s still a long way to go, but we’ll get there.

        Reply
  • Donny July 9, 2018, 8:15 pm

    Yep ico’s are horrible. Now when sto’s come out you won’t have this. Each security token is tied to an asset. Security tokens are the future. It’s going to make chain token and security token names very valuable. Security tokens is what will make crypto worth $$$. Can’t survive with a utility token.

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  • Mark Thorpe July 9, 2018, 8:28 pm

    I get contacted daily about new ICO’s and crypto-currencies, especially on LinkedIn.
    I have no Interest Investing in them.
    Only Interested in Bitcoin, Litecoin, Ethereum, Ripple and BitcoinCash.

    Also, I am sitting on quite a few crypto-related .Com domains and receiving a lot of Inquiries. Hoping to sell some of them soon!

    Reply
  • raymond July 9, 2018, 9:53 pm

    ICO’s Dead: 90% of 247 Newly-Listed Crypto Tokens Fail to Hold Its ICO Price.
    http://news.8btc.com/icos-dead-90-of-247-newly-listed-crypto-tokens-fail-to-hold-its-ico-price

    Reply

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