ICO’s Boosted $8. 3 Billion Last Quarter Most of Them Failed Their Investors

Over half of all initial coin offering (ICO) projects failed to complete their crowdfunding in the second quarter of 2018. ICOs Boosted a Record of $8. 3 Billion in Q2, But Most Missed Their Targets.

The independent ICO analysis portal found that 55% of the ICOs failed in Q2 2018. That isВ 5% more than the number of failedВ ICO projects recorded in Q1 2018. Nonetheless, money continued to flow in the ICO projects as a whole, raising fromВ $3. 3 billionВ in the first quarter of 2018 toВ $8. 3 billion in the second amounting to a 60% surge in investments. The ICOs that offered service and utility tokens were at the forefront of failure. ICORating said that emission conditions, token type, and metrics had [an] indirect effect on fundraising success,в indicating that not all the unsuccessful ICOs could have been of poor quality. The vast inconsistency led ICORating to conclude thatВ the overall quality of projects has significantly worsened. в A small number of projects haveВ reportedly raisedВ an average of $50 million per project, while theВ failed ones couldn’t even crossВ above $100,000 worth of investment. PumaPay, a reasonably-simple cryptocurrency payment, and billing solution, single-handedly raised $117 million in May 2018. The ICORating report also highlighted the bearish angle of theВ second quarter, revealing thatВ the medianВ return for the token in Q2 was a 55% loss. It isВ poor in opposition to the first quarter’s impressive return ofВ 49. 3%. However, the decline can be blamed the cryptocurrencyВ market’s dismissiveВ performance inВ Q2. Bitcoin, theВ topmost digital currency, has already declinedВ overВ 50% in 2018. Finance, Blockchain Infrastructure Lead Successful FundraisersThe study also found that 57% of the total ICOs aimed to raise funds at the ideaВ stage. But these projects raised the lowest amount of funding on average. The report said:The highest percentage of unsuccessful ICOs in terms of product readiness arose from projects at the idea stage. 58% of such projects failed to raise more than half a million dollars. вInstead, a majority of investors were interested in engaging in projects that had an MVP ready. These ICOs raised as much as $34. 5 million on average in crowdfunding. Source: ICORatingThe most popular industries according to the amount invested in Q2 was finance and blockchain. EOS, a blockchain software architecture, had raised $4 billion over the past year, while PumPay, a finance sector project, as mentioned above, was one of the most successful ICOs in Q2. Meanwhile, concerning popularity, financial, gaming & VR, investment, blockchain and social media industry observed a more substantial number of ICO projects. The abundance of gaming projects doubled compared with Q1.