Research: The ICO market has finally died …
Research: ICO market finally stalled in 2019
The times of multimillion-dollar ICO campaigns, which were organized by all sorts of projects that had only white paper available, are over. Nevertheless, even after the rise of 2017, the ICO market continued to demonstrate characteristics that made it possible to conclude that life was saved on it. “All signs point to the maturation of the ICO market,” wrote Elementus in August 2018.
Nevertheless, a year later, these signs almost disappeared, analysts of the LongHash portal say, citing data from the ICO Watch. The study did not take into account IEO campaigns, which showed more convincing results in 2019.
Just look at the number of new projects. Even after the end of the bull phase of 2017, hundreds of new ICOs appeared every month, but by 2019 their flow had dropped to almost zero..
At the same time, the amount of collected funding fell. In the diagram below, each ICO is represented by a dot corresponding to the end date and investment amount. In 2018, 14 different projects passed the $ 50 million mark, and some of them managed to significantly surpass this value. In 2019, only Contentos was able to raise about $ 50 million, but it is, rather, a project of 2018, since its ICO ended on January 3.
In total, ICOs raised over $ 7.6 billion in 2018, according to ICO Watch data. Based on the dynamics from January to August this year, it can be predicted that by the end of the year the value will be only $ 338 million. Thus, the decrease will be more than 95%.
At the same time, the few projects that decided to enter the ICO in 2019 could really be of a higher quality compared to their predecessors. The median amount of funds collected for one campaign this year is $ 6.8 million, while in 2018 it was $ 131,814. ICO Watch data also indicate that the number of followers of new ICO projects in 2019 in Telegram has doubled relative to Of 2018.
It is possible that, while maintaining the current dynamics, the ICO model will finally be forgotten by cryptocurrency projects in 2020. This is facilitated by both the tightening of the regulatory situation in the world and the general disappointment of investors against the background of unrealized expectations..
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