Over 70% Of Tokens Plunge In Value After ICO
More than 70% of tokens dropped in price after the initial coin offering (ICO), according to the report provided by the analysts of Diar.
In this regard, statistics show that this year various projects raised more funds during ICOs than in 2017, but to date more than two-thirds of these tokens lost in price.
Moreover, the number of successful ICOs has decreased. In February 2018, there were over one hundred successful token offerings, and that was the highest rate for two years, then the number of successful ICOs didn’t exceed 20 in July and August. Analysts are confident that the current situation will not change by the end of the year.
Another noteworthy indicator concerns more than 300 tokens, which in total attracted more than $2 billion in the period from January 2017 to June 2018. Currently, none of them are listed in crypto exchanges. These tokens account for a third of all successful ICO projects over this period of time.
Sirin Labs takes the first place among the most famous projects that lost in price after the ICO. The project raised $158 million, but the loss of its market capitalization amounted to $141 million, although the brand was advertised by Lionel Messi, one of the most popular athletes worldwide. PumaPay took the second position — its losses totaled $102 million, Envion is ranked the third with $96 million.
As previously reported, only 38% of the funds raised in ICOs retain in the accounts of crypto and blockchain projects, according to the research by the analytical resource Diar.