0
📰 News
468 views

ICO Market Is Dead, Only $118 Mln Raised in Q1: WSJ Report

  • Alex Dovbnya
    📰 News

    📊👀The multi-billion industry niche has experienced a brutal downfall due to the regulatory crackdown and the overall decline of the cryptocurrency market. The coin offerings, which were the darlings of risk-taking investors in 2017 and 2018, are now pretty much dead in the water with only a small fraction of them staying afloat

ICO Market Is Dead, Only $118 Mln Raised in Q1: WSJ Report
Cover image via u.today
Contents

In case you didn’t notice, the great ICO bubble has popped, and the latest report by the WSJ vividly displays the steep downfall of this fundraising craze. Only $118 mln of capital has been raised via ICOs in the first quarter of 2019, a world of difference from $6.9 bln investors threw at initial coins offerings during the same period last year.

👉MUST READ

Past ICO Review: EOS, an ICO Success Story

Past ICO Review: EOS, an ICO Success Story

From excitement to skepticism

The report, which relies on the information provided by research site TokenData, states that the rapid decline of the ICO market is attributed to the double-whammy of regulatory clampdown and the brutal crypto winter. Investors, who were blinded by the Bitcoin craze, are adopting a skeptical attitude towards cryptocurrencies.

👉MUST READ

Investors Take Legal Actions Against ICOs En Masse, But Does It Matter?

Investors Take Legal Actions Against ICOs En Masse, But Does It Matter?

Uncomfortable statistics

The lion’s share of the projects (55 percent) even didn’t manage to raise money. Case in point: Sponsy, a failed ICO that ended up on eBay. On Sept. 26, U.Today reported about 70 percent of ICOs falling below their initial price, but TokenData now reveals that a whopping 85 percent of coins offerings failed to meet their investors’ expectations as of March 2019. TokenData CEO Ricky Tan calls a spade a spade by pointing out that token sales are ‘pretty much dead.’

👉MUST READ

Top 10 Spectacular ICO Failures

Top 10 Spectacular ICO Failures

Rising up from the dead

However, attorney Joshua Ashley Klayman is still certain that the idea of ICOs is ‘worth developing.’ Regulators have to come up with a set of rules for coin offerings that would allow startups to raise funds in a legal way.

SeedInvest, an equity crowdfunding startup that was acquired by Bitcoin unicorn Circle, is also poised to be a boon for selling tokenized securities to retail investors.

Subscribe to the official U.Today Telegram channel. Get news first!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

👓 Recommended articles

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings