July 24, 2024

ICO funding is under pressure from bears, a decrease of 48%

ICO funding is under pressure from bears, a decrease of 48%

According to the ICORating report, the amount raised through ICOs from July to September decreased by 48% compared toprevious quarter.

In the third quarter, more than half of the projectsThe ICO managed to raise almost $100,000, while only a few – only 24 out of 597 projects were added to the exchanges.

ICORating notes:

“57% of ICO projects announced in the third quarter of 2018 were able to raise $100,000 or less. Only 4% of all announced ICOs were listed on exchanges.”

The first half of the year was memorable for us with such ICOs:like Telegram and EOS, which managed to raise over $1 billion. In the third quarter, the largest amount raised was just over $70 million, making the London Football Exchange one of the best-funded projects of the third quarter.

Investor Disappointment

The quarter was also unfavorable for investors:from 597 projects, 79% of tokens were trading below their original value stated during the ICO. As ICORating points out, there are a number of reasons for the disastrous quarter, resulting in both teams and investors falling prey to bearish pressure.

An analytic cryptocurrency firm, ICORating, wrote:

“In the 3rd quarter the market demonstrates widespreaddisappointment in ICO as a means of venture financing. The main reasons are: a significant drop in profits for ICO participants, an increase in transparency on the part of ICO teams/projects, a downward market trend, the fact of an increase in the level of awareness of investors in financing procedures, regulatory activities, the lack of new ideas from teams and often protracted deadlines for the implementation of presented products on the market. "