Despite numerous ICOs (Initial Coin Offerings) overflooding the crypto universe, but famous cryptocurrency investor Brian Kelly said that the market is overvalued, in an interview to CNBC. According to him, it seems that the investors are in a “wait-and-see-mode”.
On Fast Money Thursday, he was quoted as saying, “People are starting to say, ‘I’m going to put the brakes on the ICOs right now. I’ve got my portfolio. I don’t need a seventh or eighth ICO. To me, [ICOs are] not as hot as they used to be.”
Kelly further said that the market for ICOs is becoming “very frothy”, one of the most popular crowdfunding methods to raise money for cryptocurrency ventures.
In the first half of 2018, more than 300 ICOs have been launched. It is almost the same amount of ICOs in the whole of 2017. And more money has been raised through ICOs in the first six months of the year as compared to the whole of the last year.
Kelly is the founder and current CEO of an investment firm BKCM LLC which is focused on digital currencies. He further said that US is not a significant player in the ICO market, rather Asian countries are at the forefront here as the regulatory issues are not that pressing.
A lot of ICOs are funded in US dollars and not in cryptocurrencies. According to Kelly a lot of investors who are into ICOs “are actually looking to buy Ether, to buy Bitcoin, to buy some of these big protocols, these platforms that everything is being built on.”
While all this is going on, the value of Bitcoin has almost stagnated. Once it had touched the mark of US $20,000 but, as of Thursday 05:30 PM ET, it was hovering at around $6,700.