ICOs gaining popularity in the Mexican market

24 Jul, 2018
by Richard Allen
News
ICOs gaining popularity in the Mexican market

Initial Coin Offerings (ICOs) have shown that they have the potential to be an extremely successful form of fund raising. Ethereum, for example, the world’s second largest cryptocurrency, was born from an ICO. Now it seems the potential successes associated with this form of fund raising has spread to Mexico, CoinStaker reports.

According to Tomás Álvarez, general director at Volabit, a Mexico-based cryptocurrency exchange, there are some companies that are gathering upwards of $500 million through ICOs, stating specifically that there has been some important ICO activity in the country:

“There has been four or five Initial Coin Offerings. There are ICOs contacting investment funds that have been created to invest in these ICOs. Instead of buying stocks or debt, are buying ICOs.”

Furthermore, Álvarez says he has been contacted to participate in these ICOs. After his company analyzed them, however, they were found to be a poor choice for investment.

“Three or four projects were not going to work,” he said. “There is a project that is operating but I believe that the ICO price is high and nobody is going to cover the investment.”

Interestingly, according to icodata.io, July has been the lowest month this year in terms of funds raised through ICO. This month $89 million has been raised, compared to January which saw $1.5 billion raised.

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