Is that cryptocurrency exchange will become next ICO?

Remember when Bitcoin market price was hotted at $19000? The HODL of the community at that time was full of faith. Compared to the embarrassing situation of falling below the cost price, the bitcoin at that time was another sight.

Why is this happened?

1. ICO boom

Let’s turn attention to May 2017, when Bitcoin was still at $1000, more and more people know about the blockchain concept. As a result, new projects one after another was gradually established by people, including IOTA, Dash, and USDT.

In September, Bitcoin soared to $4000, and more and more such projects, Cardano, Binance coin, Monero also appeared. In these projects, some are security-oriented, some privacy-oriented, some convenient, and the others are aimed at the vertical field.

However, most of these projects were built on the Ethereum public chain, and then started ICO and began to a real R&D project. The famous EOS ICO was also carried out at that time. The entire cryptocurrency community was full of the word faith. Everyone was excited. They all hoped that the projects they invested in could land and they would be rewarded.

2. Fraud expert

The seemingly calm community is lurking in a crisis that is unknown.

The ICO projects mentioned in the previous paragraph have basically landed this year and implemented token mapping. But in fact, more than 3,000 ICO projects have appeared during this period, and most of them are built on the Ethereum network. Some of these projects are specifically for fraud, like the famous WICC, which has defrauded $2.2 billion through the World Cup gimmick.

It is also these fraud experts that will never calm the entire market. In addition, many projects have begun to land, and the “belief” is slowly disappearing. What followed was the collapse in bitcoin prices. In the meantime, the amount of currency generated during this period was too large, and someone needed to coordinate the transaction. At this time, the exchange was born.

3. How is the exchange made?

Before the exchange, there are cryptocurrency ranking websites like coinmarketcap.com and citicoins.com, which provide information on all cryptocurrencies and are good for real-time price inquiries.

Let’s turn attention to the exchange, when it comes to the current hot exchanges on the market, it is necessary to mention the Binance exchange first. As a few exchanges with convenient operations as the selling point, it is a sign. At the time when Binance hottest, the trend of the entire crypto community changed.

People have seen business opportunities in these 3,000 cryptocurrencies. Since some project is not good to land, it is good to be an exchange. So from that time on, people began to shift positions, and many projects became the “project + cryptocurrency + exchange” model.

4. Unable to get rid of the scam

There are scammers always in rich places, and cryptocurrencies are not an exception. Many of the projects that have joined the exchanges, in order to earn high profits. They use various marketing methods to guide users to trade and then profit from them.

The most common way is the “transaction ranking game”. They are sending gifts according to the ranking of the transaction, sending money, a car, or even a helicopter (yes, I mean that WICC fraudulent coin). But is someone really getting the prize? At the moment, there are very few people who actually receive the prizes. The people who can get the prizes may all be robots.

In the process, many people are brushing the transaction amount just for the prize. But the result is that they lose a lot of fees. And for more, the binance exchange also do these, but that was real deal.

There are still many similar situations. For example, the Fcoin Exchange’s “transaction-mining” model announced in May this year is also a speculative phenomenon.

So now, people who still hold altcoin, I beg you to be awake. And investing money in projects that can really land, you are really profitable.