Investments In ICO Amount To $8.3 billion In Q2 2018
ICORating, a firm that analyzes digital currency data, has found out that in the second quarter of 2018, more than 50% of the ICOs couldn’t execute the financial plan as they were expected.
Screenshot of ICORating's report
In general, ICOs keep attracting more and more investments to the projects. Factually, at the beginning of 2018, its financing equaled $3.3 billion, and in summer, the investments raised up to $8.3 billion. In comparison with the first quarter, the total investment cost increased by 60%.
The funds founded by EOS collected maximum investments during 2018, which is about $4.2 billion.
ICO projects using utility tokens turned out to be less profitable. ICORating analysts stressed that emission or the type of token do not always affect success of a financial plan. Therefore, the failure of ICOs does not necessarily mean that the project was irrationally compiled.
ICORating concluded that the quality of projects has become much worse. Concurrently, token return on investment (ROI) ratio increased by more than one half, although in the first quarter, ROI positioning was diametrically opposite. Among investors, the most fast-growing projects are those related to games industry, finance, and VR (virtual reality) products.
A number of companies and startups are interested in ICOs as a way to attract new investments. For instance, in 2017, approximately 800 ICO projects were announced.