Autumn fall in ICO fees by 48%
According to the ICORating report, the amount raised through the ICO from July to September decreased by 48% compared to the previous quarter.
In the third quarter, more than half of the ICO projects managed to raise almost $100,000, while only a few can boast of listing on cryptocurrency exchanges – only 24 of the 597 projects were added to the exchanges.
ICORating notes:
"57% of ICO projects announced in the third quarter of 2018 were able to attract no more than $100 000. Only 4% of all announced ICOS have been added to the exchanges."
The first half of the year we remember such ICO as Telegram and EOS, which managed to raise more than $1 billion.
In the third quarter, the largest amount that could be raised was slightly more than $70 million, so London Football Exchange became one of the most funded projects of the third quarter.
Investors ' disappointment
For investors, the quarter was also unfavorable: out of 597 projects, 79% of the tokens were traded below their original value declared during the ICO.
As ICORating points out, there are a number of reasons for the grief of the quarter, as a result of which both teams and investors have fallen victim to bearish pressure.
Analytical company, ICORating writes:
"In Q3, the market demonstrates widespread disappointment in ICO as a means of venture financing. The main reasons are: a significant drop in profits for ICO participants, an increase in transparency on the part of ICO teams/projects, a market downtrend, the fact of increasing the level of investor awareness in the financing procedures, regulatory activities, the lack of new ideas from the teams and the often delayed implementation of the products on the market."
Earlier studies show that most of the collected ICO funds are immediately withdrawn by the organizers from the accounts, and about 80% of the ICO were fraudulent.
