Half of last year's ICOs has collapsed
Massive funding of various crypto projects or ICOs (Initial Coin Offerings) brought with them warnings that a significant number of them would probably collapse, also, some have been fraudulent since the very beginning.
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A detailed view of the published cryptocurrencies last year showed that nearly a half fell in a year.
At Tokendata, we can read that 902 sales of tokens (ICOs) were offered last year. Of these, 142 collapsed in the first phase of raising money, while an additional 276 didn't survive for a single year. These failed crypto projects collected $ 104 million last year.
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Although 113 ICOs haven't been technically decommissioned yet, the founders have disappeared or stopped developing the project because the funds are too small. This means that investors can only count on any third of ICOs for any positive return.
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This is not a reason to be alarmed, as venture capital funds often have a worse payout. But for the first time in the history, ICOs have been offered the opportunity to become venture capital funds in the broader masses of the people. In the case of the average ICO, the business model is considerably less under control than in the financing of business angels.
kaleidoscope source
Unlike IPOs (Initial Public Offerings) of shares that allow individuals to invest in operating (albeit not even profit-making) companies, the ICOs have funded an all-around, from excellent to catastrophic ideas.
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Great view and useful info, I guess this year we will see even less successful projects in the overall much bigger market. We still have a long way to go until the market matures.
Thank you. Yes, I hope that we'll see some good ideas and ICOs in blockchain world.
Thank you for collaborating with me to promote this post as explained at https://steemit.com/steemit/@jerrybanfield/10-ways-to-fund-a-steem-growth-project.
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