Coinschedule a cryptoanalytic firm has recently released a statistical report on ICO investment, which suggests that the interest of people towards the ICOs are on a decline. Investment in ICOs by new startups have gone down from $5.8 Billion in March 2018 to $291 million in January 2019. A massive decline of 95% within 10 months.
However, the sudden fall in the interest of the market towards ICOs is still at a 2 year high despite the fall. Despite a fall of 95%, the investment is 70% higher than what it was in January 2017.
2018 was dominated by bearish market tends, but that did not really hamper the ICO market as the year marked some of the most successful ICOs at least in the first three quarters. However the same can’t be said for 2019. The beginning has been quite slow, a total of less than 50 ICO has been undertaken in the first week and a mere $6 million has been raised from the ongoing 424 coin offering projects. The raised amount and the number of ICOs are the least since 2017.
The Decline in ICO Projects started from Q4 of 2018
Another report suggests that the last quarter of 2018 saw a decrease of 25% in the capital generation through ICOs when compared to the previous 3 months. During the last quarter of 2018, a total of 600 ICOs were conducted, but the amount of fund raised came down to $400 million from $1.4 billion.
The current decline in the fund raised by ICOs could be attributed to two main factors, first being the bearish market trends which continued throughout 2018, and people were hoping that it will end soon. When the market slide refused to slow down, many investors and startups who jumped into the crypto game decided to bail out.
The other major factor towards declining ICO markets could be the crackdown of regulators, which was necessary as many cases of fraudulent ICOs arose in the last year where the investors were duped and lost millions.
EOS and Telegram Tops the chart
The coinschedule data suggest that the month of March and June last year were the most successful months for ICOs. These ICO projects generated $4billion in March while the amount reached $5 billion in June. The crypto analytic firm also listed the name of top 10 successful ICOs in the past year.
Eos led the ICO chart with over $4.1 billion in the capital generation. It’s followed by the first and second presale of the Telegram ICO with $1.7 billion and the private presale of the petro, the Venezuelan state-issued digital coin, which according to the government in Caracas accumulated $735 million, although this figure is hard to verify.