A new report shows that nearly half of all the initial coin offerings (ICOs) in 2017 and 2018 have failed to raise any funds, while 40% of them raised more than $1 million each.
According to the report issued by the research and consulting firm GreySpark, the ICO market is not entirely lucrative. After studying it in full detail over the past few years, the company issued its report and found that as many as 890 token sales did not manage to raise even a single dollar.
By contrast, 743 token sales were able to reach $1 million or more. As GreySpark also noted, many token projects fail to provide a positive return-on-investment, especially as time passes. The report used data from ICOData.io and Ico-check.com through August 2018.
The report also shows that there are many technical reasons for the inability to raise funds, including “lack of traction, disappointing product advancements, scams, difficulties in execution, no market and poor marketing or go-to-market strategy.”
Still, one market seems to be prospering right now – crypto-hedge funds.
As the report cites, as of September 2018, the number of hedge funds focused on cryptocurrency projects and tokens has increased to a total of 146 firms, up from only 9 crypto-focused hedge funds available in 2012. As such, the analysis predicts that this sector will grow between 160 and 180 crypto hedge funds by the end of this year.
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