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As expected ICO Announcements bite the dust in Q3: Report

Market analysis has led to the identification of the decline in the announcement of ICO projects in the third quarter of 2018.
Market analysis has led to the identification of the decline in the announcement of ICO projects in the third quarter of 2018.

Market analysis by a leading crypto organization has led to the identification of the decline in the announcement of ICO projects in the third quarter of 2018.

As per the report published by CoinGecko, the number of Initial Coin Offerings (ICO) in the third quarter did not match the projects announced and funds raised in the earlier quarters of the fiscal.

 

Low Q3 projects

The findings of the reports are highly self-explanatory. For the second quarter, the total number of projects which were announced needing further funds for expansion and growth was – 606. But the success rates or the number of projects which could convert or raise necessary funds were by nearly half – 267 projects. The funds raised by these were $7.73 billion.

In contrast, the numbers of projects announced in the third quarter were 388 projects, and the successful bids were a mere 193. But the downside was the $1.59 billion that could eventually be used between the successful funds.

 

Primary funding went to EOS

Notably, the funds which were raised was for the EOS project which had a year-long ICO for $4 billion which concluded in the second-quarter of 2018. It is assumed that the report considered this ICO for the period under study.

 

Other projects

Other details of the report indicate that of the 34 projects which launched tokens in the last quarter, nearly all of them were eventually registered on exchanges for cryptocurrencies. However, upon further examination, it was found that of the 34 only 7 were able to gain a trading value which was in line or above the money the fund had raised.

But the trading value could have been impacted by the typical market practice of token owners selling their wares once the project is listed.

The breakdown of the report shows that for every $100 an investor held in tokens in these 34 projects, their present market valuation would be $740. The funded projects were largely based out of the Singapore region, numbering 35 projects, over 19 were founded in the UK and nearly 6 in the US and Malta.

However, in the case of the latter two countries, the ICO applications may have been affected by the new set of a regulatory framework which these governments introduced.

 

Cryptos which topped these ICOs

The projects which were approved included the following 5 cryptocurrencies – BTC, ETH, XRP, BCH, EOS. These are currencies notably lower in their value in comparison to their prices earlier. The largest currency to have tripped in terms of prices over the three quarters of 2018 thus far has been Bitcoin cash which was 78% down, while others like EOS were down by only 25%.

Further insights from the report indicate that these five cryptos have been performing well, year-on-year and the only exception has been Ether, which loss by approximately 30% and is trading currently at $199.2.

Further, over 95% of the projects were using the Ethereum network and that these projects have sold the ‘ether’ they had raised via ICO and are yet to realize the gains from it.

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Written by Viraj S

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