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This analysis presents data on the cryptocurrency market changes during 2018. More information please join our Discord channel: https://discord.gg/Z7naefQ
This is a public report from icorating.com. If you like it you can just go icorating and open it.
It’s for Q3/2018 the market research. And it is giving some statistics about the ICO market. I mean in general we felt all in which direction the market went, but it’s good to have some statistics in order to really back this up and see the numbers of what is going on.
Yeah it doesn’t look good so far. What I wanted to show you for example: here is 600 ICOs had tried to be conducted in the Q3 approximately and all of these 600 only 24 will make it and were able to be listed on exchanges which is like a really really minor percentage out of this.
So we had lots of unsuccessful ICOs in Q3 and only half of the 600 or a little bit less raised only 100k, so we can imagine how unsuccessful some of those projects really went.
And the overall ICO funding amount was 0 to 0.5 million, which is really really not much. I mean the valuations in the ICO market really blown up, but this compared to what would have been raised like half a year ago or one year ago, it’s really nothing.
It’s crazy the ICO market is really down. We’re having a sale winter and it’s not looking good to be honest lots of projects are delaying, lots of people are having no liquidity because they invested in projects and ICO projects that are not listing, because they are saying that the market is shit.
So where should all the investors money come from for the new projects if a lot of liquidity is locked up? I’m not speaking for everybody but I am sure that some investors will have the problem as I myself have a lot of liquidity locked up in projects that are either delaying now or they’re mostly delaying to be honest. But I have to say also and given the last month or given the last three weeks I’m seeing a little bit of recovery signs in the market. And let me come back to this in the end, in order to give you overview of what is happening now.
I wanted to show you one more interesting thing is basically in this report they are categorizing the tokens and the service token is for example the token that is used as an internal currency, and that is capable of being used as a currency for the projects. You can basically replace it for example with ETH without difference to the project. It’s just the currency that exists in order to buy the product, but you can also buy the product for Bitcoin or dollar whatever currency you want. It is basically a token where the token is not really needed. It’s like a fake cryptocurrency, a fake use case, just in order to raise funds and there are a lot of projects like this, as we can see from this statistic, like a lot of projects are really not smart in designing their token use case and their token economics as a whole. And so they end up with something like this where the token is basically useless, because you can also instead use cash or whatever, a Bitcoin or Ethereum works also. And yeah this is actually not quite the way we should go with cryptocurrencies.
I think utility tokens itself are really innovative, they are much more innovative than security tokens