Q3 ICO Disappoints Amid Tighter Policies – ICORating Report

Nov 19, 2018 at 20:31

Funds generated in initial coin offerings (ICO) in the third quarter slumped from the previous three-month period, according to the latest report by the ICORating.

Published Nov. 15, the report from the ICO analysis firm shows that the fundraising method in the July to September period clocked in a total of 597 ICOs generating more than $1.8 billion, which is well below the over $8.3 billion reportedly raised in the previous quarter.

During the three months, ICO funding plunged by as much as 48 percent with most losses recorded toward September.

Q3 2018 ICO Rating

From ICORating.com

“The market in Q3 shows signs of overall disappointment in traditional ICOs as a means
of venture financing,” the report read.

“This has multiple reasons behind it – a significant drop in returns for ICO participants, an increasing lack of transparency from ICO teams/projects, an overall market downtrend,the fact that investors became more experienced and prudent in their decisions, regulation activities, a lack of new ideas from project teams and not-so-fast pace of actual blockchain implementation in the traditional market,” it added.

The increasing crackdown on ICOs due to the notoriety of its environment for scams has put “hundreds” of projects at risk.

Among those regulators pointed out was the U.S. Securities and Exchange Commission whose chair last June of this year said most ICO tokens are securities and thus should be registered with the commission.