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ICO market analysis in 2018

November 22, 2018 02:17:00 - The cryptocurrency market in 2017 has filled a new word-ICO, or Initial Coin Offering. This tool has allowed many hitherto unknown companies to raise huge funds for the implementation of their projects... and at the same time has become a vast field of fraud. The Russian Association of cryptocurrencies and blockchain cites disappointing statistics - only 3% of all projects fully fulfill their obligations to investors.

And yet, last year ICO was at the peak of its popularity, collected millions of dollars and turned into a separate branch of the crypto market. What has changed this year? Let's deal with the numbers.

How the market has changed since the beginning of the year: the number of ICO

Let's just make a reservation-at the moment known statistic for only 9 months, from January to September, 2018. In October-December, theoretically, something may change, but the ICO market trends will most likely not change.

So, first of all, let's estimate the number of token sales. In January 2018, 138 ICOS were held - from December 2017 the market fell by 17%. Quite an unpleasant start, especially considering that the entire 2017 number of projects usually grew. Further decline was smoother, but nevertheless - from January to September 2017 the number of ICO decreased by 36.2%. Moreover, in August there was a failure of almost 50% (73 ICO). In general, the number of tokens rolled back to the level of September last year.

Other project statistics

Okay, but maybe the quantity just went into quality. As for the market assessment of the ICO is important and their success, amount of money raised and other metrics. Alas, there is nothing to please the statistics - the number of failed ICO increased from 56 to 80. On the other hand, in December-September 2017, the share of failed projects ranged from 60 to 72%. That is, in fact, it is rather a feature of the ICO market, where there are too many fraudulent projects that spoil the overall picture. If it was possible to clearly separate the wheat from the chaff, the percentage of success of real ICO would be higher-but alas, while analysts cannot accurately determine how many fraudulent projects operate in the market.

But the number of attracted funds is noticeably sharp drop, and he cannot find excuses - in September, ICO invested only 290 million dollars, while since August, there has been a drop of more than 40%! About the end of last year, when in December the projects attracted more than 1.5 billion dollars, we can not talk at all.

At the same time, the top 10 projects attracted more than half of all investments-181 million dollars. But initially ICO was just a tool for small companies that could not find themselves in the traditional market. Unfortunately, there is still a negative trend. What can I say - the most successful project of September GENEXI gave the market more than 10% of all fees. It turns out that at the moment investors are attracted only by certain big names, and not the ICO market as a whole.

What will happen to the ICO next?

In fact, all of the above negative can be for the better. The ICO market is just experiencing a stormy youth, when a huge number of scams, speculators or incompetent leaders are trying to snatch some of the money from investors. Let's hope that this year the market has passed its “children's", and in 2019 we will see an increase in interest in it.

Category: News

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