Almost half of the ICO in 2017 and 2018 are unable to attract any funds. While 40% of the rest of the cryptocurrency krautsalat collected $1 million each. This is evidenced by new research from GreySpark Partners of the company.
Experts of analytical and consulting company explored the market of initial offerings of coins, taking the data collected by the projects ICOData.io and ICO-Check.com until August 2018. It turned out that the 890 ICO has been unable to attract any investment, and 743 sale of tokens ended successfully and collected at least $1 million. In addition, the analysis determined that a significant portion of cryptocurrency projects are not able to provide return on investment over time.
The study authors noted new, rapidly growing segment of the cryptocurrency market — cryptocurrency hedge funds. According to analysts, they could become an alternative to the ICO, since they represent investment funds, managed in such a way as to minimize risk for a given return. According to the report, the number of hedge funds focused on cryptocurrency projects has been growing steadily in recent years and has now reached 146. In 2012 of such funds, for example, there were only nine.
Recently, cryptologist began to seriously worry for the fate of the ICO. So, last week, participants of the discussion panel at the conference RepubliCon suggested that this form of attracting investments faces a crisis. Among the reasons for this crisis, many developers call the increasing regulation of the ICO, the glut in the market, and even knowledgeable investors. Taken together, this leads to a reduction in the number of primary offerings tokens. Overall, the panelists shared the view that the era of ICO is coming to an end.
Researchers from GreySpark Partners has proposed several causes of the failures of the campaigns for the initial placement of the coins and reducing their number. It is frustrating investors about the possibilities of deliveries, cases of fraud, difficulties of implementation of the idea, too aggressive marketing or on the contrary lack of advancement.
Recall that in August, the Committee on economic and monetary Affairs of the European Parliament (ECON) has decided to develop new rules for the conduct of the ICO.