I am actually wondering if ICOs are still a thing this days, ICOs were very popular in the 2016 - 2020 - 2021 period, I think I stopped coming across Altcoin ICOs in 2021 after the bull run came to a halt and we slipped into bear season, most ICOs were nothing but quick money grab by developers of such projects, and as such, alot of people completely lost interest in ICOs, imagine a situation were you buy a token in the ICO stage for $1, and immediately the token gets listed, the price immediately goes down to $0.01, which means that those who are buying in the open market are buying way cheaper than you who bought it in the ICO stage.
Right now, I think launchpads is what is on board at the moment, and almost all the blockchain networks have their own launchpads, do Altcoin projects still need to go through ICO to raise funds for the project? When they can easily do so using a launchpad?
It's understandable to have concerns about the viability of ICOs given their history and the evolution of fundraising methods in the crypto space. ICOs did experience a surge in popularity during the 2016-2021 period, but as you rightly pointed out, many projects turned out to be quick money grabs, leading to disillusionment among investors.
The scenario you described, where ICO participants end up paying a premium only to see the token price plummet upon listing, has unfortunately been all too common. This phenomenon has contributed to the shift away from ICOs towards alternative fundraising methods like launchpads.
Launchpads offer several advantages over traditional ICOs. They provide a more structured and transparent platform for project launches, often incorporating features like token vesting and community participation mechanisms to align incentives and mitigate the risk of immediate dumping post-listing. Additionally, launchpads are typically associated with established blockchain networks, providing projects with built-in communities and resources to support their growth.
However, it's essential to recognize that ICOs still have their place in the crypto ecosystem, albeit in a more regulated and scrutinized capacity. Some projects may still opt for ICOs if they have a unique value proposition or specific fundraising requirements that align with the ICO model. Additionally, ICOs may be preferred in jurisdictions where regulations are more favorable or where access to launchpads is limited.
Ultimately, the choice between ICOs and launchpads depends on various factors, including the project's goals, community engagement strategy, regulatory considerations, and fundraising preferences. As the crypto landscape continues to evolve, we can expect to see further innovation in fundraising mechanisms, with ICOs and launchpads coexisting as viable options for projects seeking to raise funds and engage with their communities.