In a new report portal ICORating on the state of the industry’s initial offerings of coins (ICO) for the third quarter of 2018, says that the market is showing signs of General disappointment in the traditional ICO as in the method of venture financing.
According to the authors of the report, key characteristics of the period from July to September were widespread disillusion with the concept of traditional ICO, the distribution of security tokens, tighter regulation, and a decrease in capitalization of high-profile projects launched in 2017 and 2018.
Among the reasons that led to this state of Affairs, are called significant fall in the yield for the participants of ICO, which became more acute the problem of weak transparency of the projects, the overall downturn in the market, more informed decisions of investors, regulators, and lack of new ideas from teams.
The situation is complicated by the proliferation of fraudulent or simply questionable projects, as well as restrictions for US residents, which in light of the recent actions of the Commission on securities and exchange Commission (SEC) few dare to ignore.
The report included the analysis of 597 projects that are completed over a specified period of your ICO.In total they managed to collect $1 090 819 585. For comparison, in the second quarter of ICO projects, has collected $8 359 976 282. It is noteworthy that 57% of projects failed to collect more than $100,000, and only 4% came as a result of the exchange (7% in the second quarter). The average amount raised among the most successful projects amounted to $33 million.
Noteworthy is the fact that positive values of ROI showed only the projects in the industry of marketing and advertising. Investors in other industries bear the losses – the biggest of which occurred in the area of asset management.
The report also says that 76,15% of start-UPS that raised financing through the ICO, were armed only with the idea of not having a functional product. Compared with the second quarter this figure has grown by 18.72%. The same category of projects were the least successful -72% of start-UPS collected more than $500 000.
Note that during the reporting period, 63 ICO with Russian roots, has raised $182,9 million – is the highest value among all countries, however, a large number of projects did not allow Russian teams to become one of the leaders by the average amount of funds raised. The most effective from this point of view was the startups from Spain and Singapore.
Earlier it was reported that under pressure from the SEC projects Airfox Paragon and register their tokens as securities.
Source
