Half of the ICOs Have Failed Between 2017 to 2018
September 11, 2018 3:49 pm
Research and consulting firm GreySpark Partners recently published a report on failed ICOs. The report stated that half of all Initial Coin Offerings (ICOs) in 2017 and 2018 was unable to raise any funds. But, 40 percent ICOs had raised $1 million each.
The consulting firm has been studying ICO market for a few years and has found 890 token sales which did not raise any funds at all. The report revealed that 743 token sales had reached the $1 million mark. GraySpark also mentioned that several ICO projects failed to get return-on-investment.
The report also provides some technical reasons for the fail of ICO projects. According to the survey, the loss might have caused due to lack of traction, disappointing product advancements, scams, difficulties in execution, poor marketing or go-to-market strategy.
The crypto-hedge fund market seems to be the only market which could prosper. As of September, the number of hedge funds which focused mainly on digital currency projects has increased to a total number of 146 firms.
The report also stated that crypto-hedge funds are riskier than the traditional hedge funds. The research has predicted that the number of crypto-hedge funds would grow between 160 to 180 by the end of 2018.
ICO scams are one of the biggest challenges nowadays. There have been multiple scams happening in Initial Coin Offerings (ICOs). Recently, listofico.com published a blog on the biggest ICO scams of 2018.