ICOs In Q4 2018: The Final Countdown
The “ICO” now is not a very cool word; it’s actually a pretty bad one. The story started off amazingly inspiring, and some Cinderellas even have got their Princes Charming; fewer have lived happily ever after. Then the story turned ugly, and Princes became frauds. How sad.
However, it’s not surprising for those, who trust their brains and listen to warnings. The bubble was too obvious and too heavy to last for long. And yet, many still don’t want to bow down to evident factors. In these unfortunate cases of blindness and stupidity, the best remedy comes in the form of facts and numbers.
So, ICORating agency has come up with their quarterly report on the state of the ICO market (ha! Market, right). 331 ICOs were announced in Q4 2018, 136 of them raised more than $100,000 (42%) and 9 – NINE – were listed on exchanges (2%). Even more embarrassing fact: 40% of projects that previously announced ICOs, have shut down their websites and deleted social networks. In comparison, they were 19% in Q3. I think these numbers alone are enough to forget about ICOs, but I know how stubborn crypto enthusiasts are.
It’s worth noticing that 63% of Q4 ICOs have failed to complete their fundraising goals. Again, the trend of not being bothered to develop an actual product first continued with less than 4% of companies having a fully-ready product and 67% – an idea. And people were still falling into that trap, investing real money into nothing, but promises!
And to look at things from a different perspective: there was a massive drop in the number of projects launched in Asia (-61% compared to Q3) and in funds raised (-78%). We all know that Asia is super-advanced in tech and innovation, so these large drops are perfect indicators of ICOs poor state.