The ICO Comeback: Why 2025 Feels Like 2017 All Over Again

Hanna Herzhod

28 Apr 2025 — 4 min read

Remember 2017, when ICOs (Initial Coin Offerings) were the wild west of crypto fundraising? Anyone with a whitepaper and a slick website could raise millions overnight, only for most projects to vanish or collapse within a year. The ICO boom made millionaires, wrecked fortunes, and triggered regulatory crackdowns.

Fast forward to 2025, and ICOs are back - but are they smarter, more sustainable, and investor-friendly this time? Or is this just another speculative bubble waiting to pop?

Let’s break down why ICOs are resurging, how they compare to the 2017 frenzy, and whether investors have actually learned their lesson - or if they’re still throwing money at anything with a token.

The ICO Resurgence: Why Are They Back?

Despite years of regulatory scrutiny and alternative fundraising models like IDOs and IEOs, ICOs are making a surprising comeback in 2025. Here’s why:

✅ VC Money is Drying Up – In 2024, crypto venture funding dropped by over 50%, forcing startups to explore alternative fundraising models.

✅ Retail Investors Are Back – The 2025 bull cycle has reignited FOMO, and early-stage token sales are attracting a new wave of speculators and retail traders.

✅ Regulatory Clarity is Improving – Certain jurisdictions now allow ICOs under structured frameworks, reducing the legal uncertainty that crushed them post-2018.

✅ Blockchain Innovation Needs Funding – AI-driven blockchain automation, modular chains, and DeFi 3.0 projects are seeking capital beyond VCs, reviving the ICO model.

But here’s the real question: Are ICOs actually better this time, or just better disguised?

📊 ICO Performance: How Do 2025 ICOs Compare to 2017?

ICOs in 2017 delivered some of the wildest returns in crypto history—but they were also notorious for exit scams, rug pulls, and unrealistic promises.

So, how do today’s ICOs stack up against the 2017 gold rush?

🔙 The 2017 ICO Boom: Insane Profits, Even More Insane Risks

🔹 Total funds raised: $6.88 billion in 2017 alone.🔹 Average ICO return: 13x (1,300%), with some projects like NEO hitting +500,000%.🔹 Failure rate: Over 80% of ICOs collapsed within two years, leaving investors with massive losses.🔹 Biggest scams: Bitconnect, PlexCoin, and Pincoin collectively stole hundreds of millions.

Investors weren’t analyzing tokenomics or team credibility—they were blindly throwing money at anything with “blockchain” in the name.

🔜 2025 ICOs: More Regulated, More Sustainable?

🔹 Total funds raised (2024-2025): Over $8 billion, already surpassing 2017 levels.🔹 Average ICO return: 2.5x (250%) - lower than 2017 but still significant.🔹 Success rate: ICOs today are better structured, with regulatory oversight, improved tokenomics, and institutional participation, but they still carry risks.🔹 VC & Institutional Interest: Unlike 2017, 2025 ICOs are attracting institutional investors, reducing dump risks.

The bottom line? ICOs today are more structured, but they don’t promise the same absurd gains as 2017. Instead of moonshots and 100x overnight riches, the focus is now on real utility and sustainable tokenomics.

🛑 Are Investors Smarter, or Still Reckless?

2017 proved that most retail investors didn’t care about fundamentals - they just wanted quick 100x gains. So, has anything changed?

🔴 🚩 Red Flag #1: Absurd Valuations – Some 2025 ICOs are already raising billions before even launching a testnet. Sound familiar?

🔴 🚩 Red Flag #2: Buzzword Stacking – AI + Blockchain + DeFi + GameFi + Metaverse + ZK? If a project is promising everything at once, it’s probably delivering nothing.

🔴 🚩 Red Flag #3: FOMO-Driven Retail Investors – Despite past lessons, many still blindly ape into projects, expecting instant returns.

However, some improvements suggest investors are learning:

✅ More Due Diligence – Investors now demand vesting schedules, transparent tokenomics, and clear roadmaps before buying in.

✅ More Secure Token Launches – Platforms like DAOs and new gen token sale launchpads reduce the chance of instant rug pulls.

✅ Clearer Compliance – Some ICOs now register under securities frameworks, offering legal protections for investors.

So, while ICOs aren’t foolproof, they’re no longer the lawless casino of 2017.

⚖️ Will Regulators Kill the ICO Comeback?

One of the biggest reasons ICOs died post-2018 was government crackdowns. Regulators weren’t happy about unregistered securities, exit scams, and blatant Ponzi schemes.

But in 2025, the regulatory landscape is more mature:

✔️ The EU has structured crypto fundraising rules, requiring disclosures but allowing compliant ICOs.✔️ The US remains strict, but some states are experimenting with blockchain-friendly securities exemptions.✔️ Asia is split – Some countries embrace ICOs, while others still ban them outright.

This means that while ICOs are more legally structured now, they still face legal uncertainty in key markets.

Should You Invest in a 2025 ICO? Here’s What to Watch For

If you’re considering aping into an ICO, learn from the mistakes of 2017 and ask yourself:

✅ Does the project have a real product or just a flashy roadmap?

✅ Is the team credible, doxxed, and experienced?

✅ Are the tokenomics structured to prevent early dumps?

✅ Is the ICO legal in your country, or are you risking frozen funds?

ICOs aren’t inherently bad - but bad projects will always exist. Don’t get caught up in hype and FOMO without doing your own research.

Final Thoughts: ICOs Are Back - But Will They Last?

So, what’s the verdict?

🔹 ICOs are raising more money than ever—but they’re no longer a free-for-all.🔹 Retail investors are still reckless, but smarter than before.🔹 The best projects will thrive, while scams will fade.

The ICO boom of 2017 ended in both innovation and disaster. Will 2025 be different? That depends on whether founders build responsibly—and whether investors finally learn from history.