Market analysis by a leading cryptocurrency organisation has yielded the expected result that ICO numbers significantly fell during the third quarter of 2018.

A report published by CoinGecko shows that the number of Initial Coin Offerings in the third quarter of the year did not match, or exceed the announced projects or funds raised in Q1 or Q2.

During the second quarter, 606 projects were announced and 267 succeeded, raising a total of $7.73 billion. In contrast, the number of projects launched in Q3 was just 388 with 193 successful bids, raising a total of $1.59 billion. It is worth noting however that EOS ran a year-long project and gathered $4 billion, meaning that some of the funds gathered, would have gone to that project.

The report also mentions that out of 34 projects registered in the last quarter, nearly all were then registered on a cryptocurrency exchange, but only seven were able to find a trading value that exceeded the money the fund had raised.

The report shows that for every $100 that an investor held in tokens for these 34 projects, the market valuation would be $740. Additionally, most of these projects were based in Singapore or Malta and the UK. In fact, the UK is showing high numbers of in-country based projects.

This comes at the end of a year that saw the value of Bitcoin drop 78%, EOS – 25% and Ether – 30% signalling, as many believe a maturing of the market with values that reflect better long-term growth rates.

When it comes to ICOs, it is hoped that their popularity will pick up in the last quarter of 2018 due to countries such as Malta enacting a legal framework to legitimise the industry. Such moves are expected to instil confidence in investors and encourage the development of new projects, in a safer environment.

To find out more about Malta’s newly enacted cryptocurrency, blockchain, and ICO related legislation, or to discuss setting up an ICO with Malta as a base, contact E&S Group on make things happen!

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