Ernst & Young: 86% ICO-tokens Are Traded Below Starting Price
Ernst & Young, one of the “Big four” auditors, published a report on the dynamics of token prices issued within ICOs. It turned out that 86% of these coins are traded below the listing price, and 30% have lost their value at all. At the same time, only 10 out of 372 demonstrated the reverse dynamics.
The raised funds of 110 projects amounted to about 87% of the total investments in ICO, and only 25 have a working product or at least a prototype.
It is noteworthy that, according to Ernst & Young, no blockchain platform was able to compete with Ethereum, although it was infrastructure projects that showed the best dynamics.
The company’s experts are sure that the volume of retail investment in the industry will decline, and their place will be taken by venture capital firms and investment funds.
Ernst & Young intends to re-audit the token portfolio in a year.
Earlier, Ernst & Young acquired from the American startup Elevated Consciousness technological assets and related patents, which included a tool called Andy Crypto-Asset Accounting and Tax (CAAT).
CAAT will be integrated into a solution portfolio called Blockchain Analyzer to create the most comprehensive set of technological services in the field of tax reporting and insurance.