ICORating Research: Market is disappointed in traditional ICOs
Recent research conducted by ICORating Agency states that ICOs haven’t performed well in 2018’s crypto market, which in and of itself has performed dismally in the eyes of optimistic speculators. Regardless, a recently-released report from ICO Rating, a leading crypto research/data analytics startup, has only cemented this sentiment.
A total of 597 pro¬jects were an¬a¬lyzed, which com¬pleted their ICOs in the third quar¬ter and col¬lected $1,819,585,090. For com-par¬i¬son, in the sec¬ond quar¬ter ICO pro¬jects col¬lected $8,359,976,282. In the third quar¬ter, 57% of ICOs said that they man¬aged to col¬lect no more than $100,000. All pro¬jects that at-tracted up to half a mil¬lion dol¬lars ac¬counted for $6,689,924 in a total fund¬ing. Most did not reach the stated goals.
The research also covers the stages at which projects tend to start their ICOs: of all the projects included in the study from Q3, 76.15 percent were at the “idea stage” when they ran their ICO – 18.72 percent more than in the previous quarter.
An¬a¬lysts also point out that the sit¬u¬a¬tion is com¬pli¬cated by the con¬tin¬ued spread of fraud¬u¬lent or sim¬ply du¬bi¬ous pro¬jects, as well as re¬stric¬tions for the U.S. cit¬i¬zens who, in the light of the re-cent ac¬tions of the Se¬cu¬ri¬ties and Ex¬change Com¬mis¬sion (SEC), are the few peo¬ple to ig¬nore.
It is noteworthy that in June of this year, the SEC’s chairman stated that while Bitcoin (BTC) is not considered a security, most ICO tokens probably are, requiring their issuers to register with the Commission.
Basically the report states that Q3 2018 saw 597 ICOs raise over $1.8 billion, a notably lower value than the over $8.3 billion reportedly raised in the previous quarter. A similar decline in investment has been reported in traditional Venture Capital (VC) funding for blockchain projects.
Only 4% of ICOs in the third quar¬ter went pub¬lic (7% in Q2). Nine¬teen per¬cent of pro¬jects that pre¬vi¬ously an¬nounced their in-ten¬tion to hold an ICO, this quar¬ter re¬moved their so¬cial media ac¬counts and web¬sites (9% in Q2).