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.
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Ripple Is Now The Second Most Valuable Cryptocurrency Surpassing Ethereum
“Coinbase Custody is exploring the addition of many existing and forthcoming crypto assets for storage only and will be working to add them as quickly and safely as possible. At this time, we have not yet considered these assets for trading. We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets.’’Coinbase Custody integrated XRP on their platform and institutions can now purchase and hold it with Coinbase. This is a path for a positive development of XRP but the selling pressure on ETH continued to grow since a huge deal of their holdings was held by ICOs. ICO projects sold Ethereum constantly in order to fund operations on the public exchange market and managed to accumulate millions of dollars while increasing and intensifying the selling pressure on ETH.
Analyst Believes That Bitcoin Is Expected To Bottom Out In Q2 Of 2019
“This last reading of our blockchain and macro market indicators is still in play. What has changed is that NVTS has now broken its support, typically a sell signal. All our blockchain indicators remain bearish. NVT, NVTS, MVRV, BNM, NVM. They are experimental but have served to make very correct calls to date, even when traditional on-exchange indicators were reading to the contrary.”According to Woo, Bitcoin may enter an accumulation phase which is what could give it a push for a new upward trend.
“Putting together the blockchain view, I suspect the timing for a bottom may be around Q2 2019. After that we start the true accumulation band, only after that, do we start a long grind upwards,” Woo was confident.He also explained that if Bitcoin bounces in the short-term (which is a possibility) and surpasses the $7,000 mark, a bull run before the Q2 of 2019 can happen.
“If price (in the short term) bounces upwards here, which is certainly possible, I think the 200 day moving average is the upper band of the move. This is around $7,000 right now. Remember if price goes above the 200 DMA, in the history of BTCUSD’s 8 year trade history, it’s been a reliable indicator of bear to bull transitions. It’s too early to transition out of the bear,” he concluded.Still, Bitcoin (BTC) is struggling to break out of the $6,800 resistance level and is keeping at the same situation for the past three months. A breakout above $7,000 is even more difficult with the current market conditions.
Bloomberg Analysts: Bitcoin Is ‘No Longer Boring’ But Its Price ‘May Drop To $1.5k’
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