ICO Shines Again: Encryption Projects Return to Their Roots

The rapid development of the cryptocurrency industry is attributed to three key factors: the capture of government power by large enterprises, breakthrough innovations in blockchain technology, and the opportunities for ordinary investors to grow their wealth through cryptocurrencies. However, in recent years, the capital formation mechanism in the industry has gradually deviated from the path of stimulating community participation, relying instead on venture capital-supported projects with high valuations and low liquidity. This model makes it difficult for ordinary investors to achieve substantial returns and deviates from the original intention of encryption.

In contrast, Meme coins provide ordinary investors with the opportunity to climb the wealth ladder through their egalitarian capital formation mechanism and viral propagation capabilities. Although Meme coins lack actual value, their simple and direct logic has attracted a large number of speculators.

Traditionally venture capital-backed encryption projects are often constrained by the homogeneity tendency and risk-averse culture of the venture capital industry. This leads to project selection criteria that place too much emphasis on the founders' background rather than technical strength, ultimately resulting in inflated project valuations and making it difficult for ordinary investors to achieve substantial returns.

In contrast, the ICO model allows any creative team to raise funds directly from the community without intermediary control. The value of an ICO project comes from its dissemination capability and technological potential, rather than the background of its founders. Although most ICO projects ultimately fail, a few successful cases can bring astonishing returns to early investors. This high-risk, high-reward characteristic is precisely what encryption investors seek.

With the development of the industry, ICOs are returning in new forms. Thanks to technological advancements, ICO issuance and token trading have become more convenient. The new generation of trading platforms is lowering the entry barriers, attracting more ordinary users. However, both project parties and investors need to remain cautious to avoid repeating past mistakes.

Overall, the return of ICOs represents the cryptocurrency industry's return to its original intention of decentralization and high-risk, high-reward opportunities. Despite the high risks, ICOs still present a rare opportunity for ordinary investors to gain substantial returns. Let's embrace ICOs, reignite the community's enthusiastic support, and create possibilities for new projects!