German Startups Suffer Losses After ICOs — Report
The majority of German startups have suffered losses because their assets plunged in value after conducting ICO campaigns, Cointelegraph reports citing data from WirtschaftsWoche.
The representatives of WirtschaftsWoche, a weekly business news magazine, carried out a study that made a comparison of the tokens issue costs of ICOs organized by German projects with the September prices of the current year. Experts have concluded that the assets of these projects have lost in price much more than liquid cryptocurrencies, including bitcoin and ether.
Another finding presented in the publication is that just eight projects with offices in the Federal Republic of Germany accomplished their ICOs. Foreign firms organized many ICO campaigns as well. For example, the token of the Naga company NDC, which is added to the list on the Frankfurt Stock Exchange (FWB), was issued in Belize. According to CoinMarketCap at 12:49 (UTC), October 2, Naga is ranked 238 with the total market capitalization of $17.1 million and valued at $0.29.
Of a plethora of German ICOs, only Neufund and Wysker startups have stable assets, as opposed to Frankfurt-based companies Savedroid and Iconiq Lab, the tokens of which have lost in price by approximately 40% and 92%, correspondingly.
In the summer, Bitkom conducted a study and informed that German IT projects show a marked preference to fundraise through classic IPOs, henceforth considering them to be more reliable than ICOs.
As previously reported, Bitwala, a German company, will launch a blockchain service that will allow platform users to manage their funds in euros and bitcoins via a consolidated bank account.