Data shows that the initial coin offerings will die out in 2020 as it seems that over the past two years of the crypto fundraising phenomenon has finally come to an end as per the reports we have in the blockchain news today.
The gathered data by the crypto analytics company LongHash which was published on October 1st, the figures show that ICOs are no longer profitable. The original source was tracking the ICO watch website which eventually disappeared since LongHash gathered the data in august. The example of the extent of the ICO decline is visible everywhere. There was even a peak of more than 160 projects set to close in January 2018 and currently, that number has literally come down to zero. There was even not a single one that was due to conclude in August either and as per the data we can read that:
“Even after the onset of the bear market in January 2018, ICOs were still happening at a rate of well over a hundred each month, but by 2019 the flow of projects had dwindled to almost nothing.’’
Regarding the money raised, the same story emerges. There is a total for 2019 which was about $338 million or more than 95% less than in 2018. As the data shows, the slow death of ICOs has already become a certainty for some commentators for the previous months. The crypto bear market and fresh challenges such as regulatory compliance made it very impossible for the ICOs to follow. The data shows that in July the ICOs raised almost $12 billion but more than 800 new tokens were worthless. ICO watch showed a similar picture since the listings showed large number of coins trading at $0. 2019 was a year when there were higher average funds raised but this year’s activity raise $6.8 million on average while 2018’s average was $131,800.
The ICOs were not the only ones that suffered. The security token offerings also hit some hard times. The regulations came into force and both the STOs and ICOs now require huge list of procedures and compliances and vetting of the participants as per the cryptocurrency news reports.
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