A new report shows that nearly half of all the initial coin offerings (ICOs) in 2017 and 2018 have failed to raise any funds, while 40% of them raised more than $1 million each.
According to the report issued by the research and consulting firm GreySpark, the ICO market is not entirely lucrative. After studying it in full detail over the past few years, the company issued its report and found that as many as 890 token sales did not manage to raise even a single dollar.
By contrast, 743 token sales were able to reach $1 million or more. As GreySpark also noted, many token projects fail to provide a positive return-on-investment, especially as time passes. The report used data from ICOData.io and Ico-check.com through August 2018.
The report also shows that there are many technical reasons for the inability to raise funds, including “lack of traction, disappointing product advancements, scams, difficulties in execution, no market and poor marketing or go-to-market strategy.”
Still, one market seems to be prospering right now – crypto-hedge funds.
As the report cites, as of September 2018, the number of hedge funds focused on cryptocurrency projects and tokens has increased to a total of 146 firms, up from only 9 crypto-focused hedge funds available in 2012. As such, the analysis predicts that this sector will grow between 160 and 180 crypto hedge funds by the end of this year.
High Bitcoin Volatility Expected Soon: Price Analysis
Ether Is Consolidating The Losses Against Bitcoin
Cameron And Tyler Winklevoss: It’s Bitcoin’s Bottom Of The First Inning
"We still think it’s the bottom of the first inning."The Winklevoss twins first invested in bitcoin back in 2013 and they said that at first bitcoin didn’t sound like a good idea but after a few tequila shots it started making sense. Now, they have about 1 percent of all bitcoin outstanding. The twins reportedly plowed millions from their settlement with Facebook into bitcoin of course. After they saw that the investment balloon will be estimated for billions of dollars, they claim to have taken away the sting from having Facebook kidnapped from them. The Wall Street Journal apparently asked them what happens when the twins meet with Zuckerberg at a crypto conference and the twins answered:
“Welcome to the party, what took you so long?”Regarding Libra, Facebook’s cryptocurrency is looking less as a cryptocurrency. David Marcus who works at the development center for Libra reportedly wrote to the lawmakers:
"We want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received.”Meanwhile, the policymakers have a hard time to understand and to find a way how to handle Libra but they can’t stop bitcoin at least not anymore. Cameron and Tyler Winklevoss noted:
"To shut down bitcoin you have to shut down the internet...like North Korea. Countries will have to play with it."As per the coming altcoin news, the twins see future where Zcash and Ethereum will have a very important role mainly because of their privacy features. As for Gemini, the competitive landscape is only warming up. Poloniex, for example, allowed purchasing cryptocurrency by using credit and debit cards, Binance is coming to the United States and CEX.io also opened a new US office.
ECB Official Warns: Libra Could Be Very Dangerous Without Rules
‘’It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.’’The entire ECB executive board believes that digital currencies will represent the ‘’wake-up call’’ for regulators around the world. He believes that this could result in regulatory entities making improvements in their operations. Facebook’s plan is to launch a digital currency which will trigger central banks and all policymakers across the world. The U.S. congressional committee asked the social media giant to stop the operations regarding Libra. Also, the House Financial Services Committee noted issues that touch the security nature of the cryptocurrency and Facebook’s troubled past regarding data privacy:
‘’Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action.’’The House Financial Services Committee also warned that if Facebook decides and launches Libra prior to the legislative solutions, the result will be a new ‘’Swiss-based financial system that is too big to fail.’’ The committee also stated that it will further hold public hearings on crypto-related matters next week. As noted in the latest cryptocurrency news, the Reserve Bank Of Australia Governor Philip Lowe indicated there are a lot of regulatory issues regarding Libra. In Asia, the Bank of Japan also warned that Libra poses a huge threat to the current financial systems.
Join us on Facebook
- Crypto Laws In Switzerland: What Makes This Country Special?
- Silk Road User Gets $19 Million Bitcoin (BTC) Confiscated By Government
- Five Cannabis Infused Cryptocurrencies To Invest In This Year
- Tim Draper Believes Crypto And Libra Are Bridges To A Bitcoin World
- BTC Network Is Now 8x More Powerful Than It Was At $20,000
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
Bitcoin News1 day ago
Big BTC Price Boom Will Bring To Consolidation: Market Experts
Regulation5 days ago
French Authorities Will Approve Crypto Regulations For ICOs & Exchanges
Bitcoin News2 days ago
Banks Are Afraid Of BTC And They Are Chasing Their Customers Away
Bitcoin News1 day ago
Fiat Money Is Used 800 Times More Than Bitcoin To Launder Money
Regulation5 days ago
G7 Approves The Japan Crypto-Based SWIFT Alternative
Bitcoin News5 days ago
Bitcoin Bounces Back Near $10k, Analysts Aren’t Convinced Of A Run
Blockchain News2 days ago
Japan Will Create International Crypto Infrastructure Better Than SWIFT
Altcoin News5 days ago
Coinbase Is Rolling Out New Data Tools For ‘First Time’ Crypto Investors