Factors Behind ICO Fundraising Drop

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Factors Behind ICO Fundraising Drop

The report specifically notes that there are multiple primary factors contributing to the drop in ICO fundraising, including the high frequency of scams and fraud, uncertainty regarding regulation, a decline in value of some of the most hyped ICO products from earlier this year, and a general disappointment in the state of the markets.

A lack of transparency within many projects is one source of fear for investors, as it leads to increased uncertainty regarding how trustworthy the team leading the project is.

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The fear that stems from a lack of transparency in the industry is due to the amount of news regarding ICO-related exit scams.

Credit:https://www.newsbtc.com/2018/11/15/report-ico-funding-stumbles-in-q3-regulation-a-primary-factor/