Cofound. it stops working

An unexpected move from the ICO platform Cofound.it. Thinking about the changing ICO market and the downturn that has turned bright projects into barely smoldering ones led the team to the decision to stop working.

In a candid blog post, Cofound.it explains its decision by the dramatic change in the market with the arrival of institutional investors. The core idea of ​​Cofound.it was to create an alternative VC (venture capital) ecosystem built around the crypto community, democratization and transparency. Instead, the larger ecosystem evolved and transformed into something completely opposite. What may be a new impetus for Bitcoin is killing tokenized projects. 

Cofound.it​ was a timely idea, it was the first project to be fully funded by the community in a pre-seed round. 

The CFI token is one of the tokens that has actual utility - from day one it is used on the platform to access Priority Pass status and as a community rating reward.

CFI was listed on Bittrex and Bitfinex with a market price reaching $0.43 and high liquidity between $0.5 million and $1 million before the market declined.

Late 2017 year, the ICO concept began to change, large professional investors and hedge funds entered the market. It became clear that the "community" behind the project's concept was gone, the concept of an ICO based on a democratic community was dead.

Instead of waiting for the market to change, Cofound.it decided to cease operations and distribute assets to token holders. As a result of this latest promise, the CFI token skyrocketed 20% on exchanges. 

Critics are divided on Cofound.it's decision. Some believe that this is clear evidence of a dying ICO market, while others believe that the team's decision is due to the continued decline in ICO fees, which makes platforms for them less and less profitable.

In addition to bearish market conditions, exacerbated by an overabundance of tokenized projects, there is a growing understanding that simple tokens are not enough to capture the value of a project. In order to issue your own successful token, the value of which is determined by more than just speculation, it is necessary to include mechanisms that incentivize investors and users of the platform. According to a study of the initial coin offering market, almost 70% of tokens issued through ICO this year will never appear on an exchange listing.. The ICO market is really experiencing great difficulties now, according to experts, and its chances return to last year's peak are unlikely.