US SEC’s double down on digital currency precedes almost 50% drop in ICO financing

US SEC’s double down on digital currency precedes almost 50% drop in ICO financing
Nov 17, 2018 by Rico Wise

ICORating, a cryptomarket analysis company, has reported that ICO’s raised 48% less money within the period from July to September in comparison to the period from April to June.

In the course of the third quarter, over a half of initial coin offering startups, which were announced, succeeded in accumulating only as much as 100,000 dollars, and only a small number managed to procure listing on cryptoexchanges. Out of 597 startups that were introduced in Q3, only 24 projects were enlisted on the cryptoexchanges.

According to the report, over ¾ of the projects that were conducting fundraising events had more of an idea as opposed to a functional product, which is 18.72% more than Q2. Quite predictably, this category of startups represented the biggest percentage of unsuccessful money raising campaigns, with 72% of such startups at the idea phase being unable to accumulate over half a million dollars.

However, nearly 10% of the startups had an MVP, whereas almost 5.8%, 4.7%, and 1.7% of the startups were in beta, alpha, and code stages accordingly. Only as much as 1.37% of the startups had a product on the stage of release.

Comparing to the first two quarters of 2018, where EOS and Telegram managed to successfully accumulate over 1 billion dollars, the third quarter yielded only as much as 70 million dollars for a single startup – London Football Exchange, which also was the only ICO to get into the top-10 fundraiser list for the three quarters of 2018.