Amount of Funds Raised in Q1 2019 via ICOs Dramatically Falls Compared to Last Year’s Results
Just $118 million has been raised via Initial Coin Offerings (ICOs) in Q1 of 2019, which is 58 times less than the amount raised during the same period in 2018, the Wall Street Journal reported citing analytics website TokenData.
The report also reveals that of the 2,500 projects that TokenData tracked since 2017, purportedly only 45 percent successfully raised money.
Furthermore, only 15 percent of tokens issued in successful ICOs are trading at or above their original price.
The WSJ argues that investors have apparently lost their appetite for this type of investment as a result of the measures taken by regulators against this fundraising mechanism , as well as by the general bear market over the past year.
One of the latest cases happened in February, when the United States Securities and Exchange Commission (SEC) accused the crypto company Gladius Network of selling unregistered securities after the company filed its reports with the regulator.
Last December, it was reported that almost 1,000 cryptocurrency projects had officially ‘died’ over the course of 2018.
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