Multi-Billion Dollar ICO Market Down to a Few Hundred Million

Multi-Billion Dollar ICO Market Down to a Few Hundred Million

Multi-Billion Dollar ICO Market Down to a Few Hundred Million

The Initial Coin Offering (ICO) market is currently experiencing a sharp decline according to August statistics. The industry, which peaked during the months of January, February, and March is believed to be moving down in lockstep with the current floundering cryptocurrency market.

Cryptocurrencies have been bleeding value since the beginning of the year, triggering an industry-wide domino effect that has caused significant concern among skittish investors, who are jumping ship. For cryptocurrency startups undertaking ICOs, August was by far the worst month this year, with only about $326 million being raised. This is a sharp drop as compared to January whose figures stood at just over $3 billion.

ICO Failure Statistics

According to a recent study undertaken by GreySpark Partners, close to 50 percent of all ICOs launched in 2017 and 2018 failed to raise enough funds for the projects to take off, with only 40 percent of them raising over $1 million.

Analysts have pointed to several factors that have contributed to the decline in the ICO space. They include increased investor awareness, who are now, especially wary about ICOs, tighter government controls, poor marketing strategies, and market saturation.

An Evolving Market

Another major reason why ICOs are on the decline is that more companies are choosing to fund their cryptocurrency projects through other alternative means to conform to government regulations. Security Token Offerings (STO), for example, are becoming more popular because they are more compliant with guidelines issued by government agencies such as the SEC.

They are also seen as a way to legitimately seek funding for digital asset initiatives, and companies such as Overstock have jumped on the STO bandwagon for this reason. For investors, STOs are a safer way to get involved in crypto projects than ICOs, because they are backed by real company assets.

Simple agreements for future tokens (SAFT) are another way through which cryptocurrency companies are raising funds. Kodak, for example, has adopted this mode for its Kodakone project. SAFTs are used to raise funds from accredited investors with the promise that they will get access to the finished product.

Cryptocurrency Tool Kit for only $7

Content retrieved from: https://coincentral.com/multibillion-dollar-ico-market-down/.

Facebook Commenti

Condividi articolo

Related Posts

Circle ha aggiunto la possibilità di investire in Zcash tramite il suo prodotto Circle Invest

Commenti disabilitati su Circle ha aggiunto la possibilità di investire in Zcash tramite il suo prodotto Circle Invest

What is Ethereum? | The Ultimate Beginners’ Guide

Commenti disabilitati su What is Ethereum? | The Ultimate Beginners’ Guide

TRON (TRX) si muove in avanti nel mondo degli affari

Commenti disabilitati su TRON (TRX) si muove in avanti nel mondo degli affari

La crisi valutaria in Medio Oriente sta spingendo le persone ad acquistare Bitcoin a prezzi record

Commenti disabilitati su La crisi valutaria in Medio Oriente sta spingendo le persone ad acquistare Bitcoin a prezzi record

Bitcoin scende sotto 8.000, vendite anche su IOTA, Ripple e Ethereum, ma il mercato potrebbe presto riprendere a salire

Commenti disabilitati su Bitcoin scende sotto 8.000, vendite anche su IOTA, Ripple e Ethereum, ma il mercato potrebbe presto riprendere a salire

Covesting lancio della sua piattaforma in beta testing

Commenti disabilitati su Covesting lancio della sua piattaforma in beta testing

BitMart exchange viene quotato su CoinMarketCap

Commenti disabilitati su BitMart exchange viene quotato su CoinMarketCap

L’Indonesia autorizzerà il commercio di futures bitcoin e criptovalute

Commenti disabilitati su L’Indonesia autorizzerà il commercio di futures bitcoin e criptovalute

Bittrex ‏ha annunciato che supporterà il trading per Ripple XRP/USD e Ethereum Classic ETC/USD

Commenti disabilitati su Bittrex ‏ha annunciato che supporterà il trading per Ripple XRP/USD e Ethereum Classic ETC/USD

Bitcoin inizierà la sua ascesa dalla metà dell’anno per raggiungere nuovi massimi

Commenti disabilitati su Bitcoin inizierà la sua ascesa dalla metà dell’anno per raggiungere nuovi massimi

Il prezzo di Ethereum (ETH) scende al minimo di agosto 2017

Commenti disabilitati su Il prezzo di Ethereum (ETH) scende al minimo di agosto 2017

Paying with Bitcoin: What You Need to Know

Commenti disabilitati su Paying with Bitcoin: What You Need to Know

Create Account



Log In Your Account