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

According to the ICORating report, the amount raised through the ICO from July to September decreased by 48% compared with previous quarter.

In the third quarter, more than half of the projectsICO managed to raise almost $ 100,000, while listing on the cryptocurrency exchanges can boast of units - only 24 out of 597 projects were added to exchanges.

ICORating notes:

"57% of ICO projects announced in the third quarter of 2018 were able to raise no more than $ 100,000. Only 4% of all announced ICOs were added on exchanges."

The first half of the year we remembered with such ICOs,like Telegram and EOS, which managed to raise more than $ 1 billion. In the third quarter, the largest amount that was able to attract was a little more than $ 70 million, so the London Football Exchange became one of the most funded projects in the 3rd quarter.

Investor Disappointment

For investors, the quarter was also unfavorable: with 597 projects, 79% of tokens were trading below their initial value declared during the ICO. As ICORating points out, there are a number of reasons for the grief quarter, as a result of which both teams and investors fell victim to bearish pressure.

An analytic cryptocurrency firm, ICORating, wrote:

“In the 3rd quarter, the market demonstrates ubiquitousdisappointment in ICOs as a venture financing tool. The main reasons are: a significant drop in profits for ICO participants, an increase in transparency on the part of ICO teams / projects, a market downtrend, the fact that investors are more aware of the financing procedures, regulatory activities, the absence of new ideas from teams and the often protracted timelines for selling products on the market ".