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icoman

A lot of ICOs sitting below their listing price

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Ernst & Young gave a recent report revealing that about one-third of all cryptocurrencies financed through online fundraisers such as ICOs, have lost almost all their value while most of them are trading significantly below their trading price. Data for the report was from 141 cryptocurrency projects which issued their tokens in 2017 through ICOs. It revealed that both the ICO tokens and the cryptos established earlier were significantly affected by the crypto crash that happened in 2018. The report revealed that 86% of projects analyzed have fallen below their listing prices on the aggregated markets. This indicates that, despite the fact a good number of projects in 2017 made great gains towards the close of the year, they have been affected by the bear market.

 

In 2017, an unprecedented rise was seen in the crypto market, led by Bitcoin whose price rose from $800 in January 2017 to almost $20k in December 2017. This rise in price was led by euphoria that swept through the whole markets, with the throwing in of money by investors at any crypto-related project requesting it.

A market crash and a continuous bear market where the price of Bitcoin fell to under $6k in February. Currently, Bitcoin is trading at $6470. Most of these cryptocurrencies that the markets hyped and took large amounts of investor’s money has lost strength or momentum, with reports revealing that 71% of ICO projects in 2017 still lack a functional product. In addition to most ICOs not showing signs of having a promising future for investors, most of them accepted fiat currency for their services, which devalues their tokens.

 

Brody said that the ICO market is experiencing a worse state compared to that experienced in the late 1990s by dot com market, where very great sales volume and spikes in stock price was experienced by some useless startups, before shutting down later on.

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