A Reason To Believe That ICOs Never Really Left

5 Jun, 2018 · 3 min read

This past week, Block.one’s EOS Initial Coin Offering has been all the rage among ICOs. And why shouldn’t it be? With more than $4 billion raised over the course of its year-long timeline, the EOS coin ICO not only more than doubles its nearest competitor (Telegram recently raised $1.7bn in its own record-breaking ICO) but according to The Wall Street Journal it’s “larger than all but one or two of the world’s initial public offerings on stock exchanges so far in 2018.” The EOS coin price even shot up to $15.63 a coin after the ICO closed, before settling in the $14 range this week.

Despite cryptocurrency prices more than halving since bitcoin nearly hit $20,000 in December 2017, it’s clear that investors are not holding back on their excitement for ICO projects in 2018. In fact, Bloomberg this past week reported on the 2018 ICO market already exceeding $9bn in 2018- more than double 2017’s total of less than $3bn.

What the EOS ICO Tells Us About ICOs Demand

Not all ICOs look alike, as evidenced
by the different strategies both Block.one and Telegram employed (the
former’s EOS coins are already trading on exchanges, while Telegram was
only available to private investors). And with regulators looking to
clamp down on misleading or outright fraudulent projects, it remains to
be seen if this momentum will continue through the rest of the year or
if there will be a chilling effect on investor enthusiasm.

However, despite many of the challenges and questions facing even the most high-profile ICOs, investor enthusiasm to-date has been undeterred. Even Block.one’s EOS ICO has faced numerous questions in recent weeks, including potential network-crippling security vulnerabilities and pointed criticisms about EOS’ proposed governance model from none other than Ethereum creator Vitalik Buterin himself. But this has done little to dampen interest in the project, as investors continue to believe in the potential of EOS to process nearly one million transactions per second and solve the scalability challenges blockchain technology has yet to overcome.

A Confident Blockchain Future amid ICOs

If the EOS coin ICO is any indication, it’s that investors on the whole continue to believe in the potential of blockchain technology to revolutionize daily life. And with that belief, you can bet your bottom-dollar that ICOs will continue to be a primary fundraising vehicle for the blockchain industry.

With CoinTracking, you can:

Import trades from 110+ exchanges and wallets
Support for DeFi trades (e.g., Uniswap).
Import your Binance Smart Chain and Binance Chain trades.
25+ advanced reports, including which coins are tax-free or tax reduced.
12 accounting methods (e.g., FIFO, LIFO, HMRC, ACB).
Generate compliant tax reports in your country.

Sign-up to CoinTracking today!

Follow us for weekly crypto tax content:

Crypto Tax Guide for the United Kingdom

5 things to know about paying taxes on crypto in the UK

Crypto Tax Guide for the United States

Crypto Tax Guide for Australia

NFT Taxes: The Guide for Australia

Crypto Tax Guide for Canada

The Superficial Loss Rule

If you need personalized help reviewing your transactions or preparing your US tax returns, check out our CoinTracking Full Service. CT Full Service is provided by a team of crypto tax professionals led by Sharon Yip, an expert CPA. Follow our weekly AMAs on Twitter where Sharon Yip answers your crypto tax questions.

Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.