Do you know what makes cryptocurrency successful?

} 25. Jun 2019 Miran Pavlic

If you ask 100 different people what makes cryptocurrency successful, it is very plausible that you will get 100 different answers. When we created APOD (our own cryptocurrency) here at AirPod, we wanted the answer to that question. And you know what we realized? It is pretty simple — the main reason for the success of the cryptocurrency is the Demand!

Was that one of the reasons for Crypto Winter? Definitely!

But not any kind of demand — we know the demand, which comes from 1) Hype, or from 2) FOMO — but none of them are going to make the cryptocurrency successful. What you need is Genuine Demand — when people are buying your cryptocurrency because of its initial purpose. This is what we call utilization and it is at the same time the most important and the most overlooked reason for the success.

The world of cryptocurrencies has drastically changed since December of 2017. We all remember the times before the Crypto Winter. New cryptocurrencies were entering the exchanges every day. Influencers were presenting new tokens that will make us rich in no time.

In the times before the Crypto Winter, cryptocurrencies were seen as successful one even if they were influenced by Hype or Fomo. People were seeking the opportunity for a quick return on their investment. Contributors were investing in different cryptocurrencies based on predictions that they will make some more money soon. Advisors and influencers were creating The Hype, in more cases without understanding how cryptocurrencies will be utilized. Greed and opportunity was the main driver for influencers that were helping to generate a lot of hype so they could make exit for themselves.

If we look only the first half of the year of 2018 — ICO Contributions in the first quarter of 2018 surpassed the $5.6 billion raised in 2017. At $6.3 billion, ICO funding in the first quarter was 118 percent of the total for 2017. Until the end of the second quarter, there have been 579 ICO’s established, and they raised more than $12 billion contributions. However, then everything went down and one of the reasons (beside exchanges stopped accepting new client and being a bottleneck for new fresh money and general bubble after effect — more about that: https://bit.ly/2rjgMOM) because majority failed to deliver/utilize!

Fomo is the logical continuation of the Hype because after some cryptocurrency reached high growth, people didn’t want to miss out. Buyers did not have time to think about the reason, that cryptocurrency was established for, they only saw the Hype and heart: “Do not miss out!”

And without people buying the token because of its actual purpose, there is no genuine demand and without genuine demand, there follows the collapse.

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