Cryptocurrency startups managed to raise $ 118 million through ICO in the first quarter of 2019, that is, 58 times less than in the same period last year when $ 6.9 billion was collected. Such data are reported by Wall Street Journal with reference to the TokenData portal.
According to the WSJ, investors are deterred by regulators actions against non-compliant ICOs, the proliferation of fraudulent schemes and an overall decline in the market.
TokenData analyzed 2500 project and figured out:
- 55% failed to attract funding
- tokens of only 15% of projects, which was able to raise funds, are being traded above ICO price
The article also cites the words of lawyer Joshua Kleiman, who believes that the idea of ICO, despite the presence of many negative examples, deserves development, perhaps in the format of placing digital securities after defining the necessary legal concepts by regulators.