The ICORating team released a new report on its position in the global market for the first tokens placement for the third quarter of 2018. The company says that the market is showing signs of general disappointment in traditional ICOs as in the venture financing method.
According to the authors of the report, the key characteristics of the period from July to September were the general disappointment in the concept of traditional ICOs, the proliferation of security tokens, stricter regulation, and a decrease in capitalization of high-profile projects launched in 2017 and 2018.
Among the reason, that led to this state of affairs, is the significant drop in profitability for ICO participants, which has become more acute the problem of weak project transparency, a general decline in the market, more informed decisions of investors, regulators, and the lack of new ideas among teams.
The situation is complicated by the spread of fraudulent or simply dubious projects, as well as restrictions for US residents, who, in the light of recent actions of the Securities and Exchange Commission (SEC), are few who can be ignored.
597 projects fell under the supervision of ICORating, which completed their ICOs for the indicated period. In total, they managed to raise $ 1.82 billion. For comparison, in the second quarter, ICO-projects collected $ 8.36 billion. It is noteworthy that 57% of the projects failed to raise more than $ 100,000, and only 4% ended up on the stock exchange. The average amount of funds raised among the most successful projects was $ 33 million.
The report also says that 76.15% of startups that attracted funding through ICO were armed only with an idea, without having a functional product. Compared with the second quarter, this figure increased by 18.72%. The same category of projects was the least successful –72% of startups collected no more than $ 500,000.