76% of 2018 ICOs Are Sinking, Research Says

According to the research, most of the tokens of "successful" ICOs are being traded at a loss
20 March 2018   817

At the MIT Bitcoin Expo in Cambridge, Christian Catalini stated that "40% to 50% of ICOs are currently underwater – trading at a price lower than the initial offering price." 

Having studied the data for 2018, using the ICO statistics from Tokendata, News Bitcoin Com confirms that this is a reasonable estimate. In fact, 76% of the 74 ICOs completed this year are at a loss, given that the ICO statistics calculate ROI based on the pre-sale price of the token, rather than a public sale.

Ether has fallen in price since the beginning of the year, reducing the average yield of each dollar invested in the ICO. These projects can continue to generate healthy profits, as their infrastructure develops and markets are gaining momentum. But, as research says, investing in ICO is now an extremely risky business that is statistically unlikely to bring short-term profits.

In 2017, ICOs generated an average ROI of 573% according to Coinist. This year, just one ICO – Zilliqa – has reached that figure, delivering 12x. Last year’s big hitters, by way of comparison, were

  • Spectrecoin (46,000%),
  • Storj (7,600%),
  • Populous (5,400%)
  • Qtum (4,500%).

For the ICOs in 2018, perhaps, everything is still ahead, but right now investors are unlikely to see big profits, research reports. Large-scale discounting at this stage means that by the time of public sale, as a rule, a few tokens are left, and their valuation, combined with market conditions, makes the profit almost impossible.

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Pantera Capital to Intend to Raise $175M for Crypto Fund

Whether the firm can achieve its funding goal is still unclear
16 August 2018   192

Pantera Capital intends to raise up to $ 175 million for its third venture fund, focused on the blockchain and cryptocurrencies, which marks significant progress against the background of the company's other two funds: the assets of the first of them are $ 13 million, the second - $ 25 million. This is reported by TechCrunch.

As reported, company's partner Paul Veradittakit says the target amount is a “function of how fast the space is moving, the talent coming in, the opportunities, and the sizing of rounds. With more interesting later-stage investments [on our radar], too, we want to be flexible and able to move with the market.”

Whether the firm can achieve its funding goal is still unclear. According to documents recently sent to the US Securities and Exchange Commission (SEC), it has already managed to raise more than $ 71 million with the participation of 90 investors. Veradittakit calls this event "the closing of the first transaction".

One of the company's new funds, which opened last year, has a hedge fund structure and focuses exclusively on the ICO. The founder of the company Dan Morehead said earlier that Pantera takes part in the first stages of such campaigns, "basically getting a discount to the ICO price by getting in early, when it’s just a team and a white paper."

The second fund of the company is engaged in investing in bitcoin and has managed to serve a large number of investors during its existence. According to Morhed's calculations, the fund, launched 5 years ago, demonstrated a return of 10 136%.

The last fund Pantera invests in cryptocurrencies, which are already traded on the exchanges. It uses machine learning for algorithmic investment and takes into account the views of the company's management when making investment decisions.