Study: From the beginning of 2017, half ICO failed; 40% have collected more than $1 million
Almost half of the campaigns on the initial location of the coin (ICO), held in 2017-2018, failed, while the other 40% have collected more than $1 million, according to the new study.
Consulting company GreySpark Partners examined the market of the ICO over the last few years and found that 890 token Seil generally not attracted any means. On the other hand, according to the report, 733 campaign collected $1 million or more.
GreySpark notes that many of the ICO projects are unable to demonstrate positive returns, and the probability of success decreased with time since the end of the campaign. In their study, GreySpark also references data ICOData.io and ICO-Check.com as of August 2018.
The participants of recent conferences have doubted that in the future we can expect many major ICO campaigns, justifying this with the increasing regulation, rising awareness of investors and even maturing market.
In the present study the problem is considered from a more technical side – according to its authors, the market downturn ICO may be caused by “lack of effort disappointing product development, fraud, complexity and weak marketing strategies and to market”.
At the same time, the cryptocurrency market, hedge funds continued to experience an increase. According to the report, as of September the number of hedge funds specializing in cryptocurrency projects and tokens, is 146 firms, more than in January. In 2012, such funds were only nine.
Unlike traditional hedge funds, cryptocurrency counterparts tend to prefer long positions, taking on increased risks, the paper said.
Analysts expect that by the end of the year the number of cryptocurrency hedge funds will reach 160-180.