The ICO economy succumbed to a dramatic decline in Q2 of this year. Such was the extent of the slump that its pushed the average ROI for ICOs into the red for the first time since records began. New figures released this week show the severity of the great ICO slowdown.
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Token Sales Are in Trouble
The fact that most ICOs from the last quarter are mired in the red will come as no surprise: anyone who’s glanced at their portfolio in the last 90 days will have deduced that much. New figures from ICOrating.com reveal the extent of the decline, but do provide a glimmer of hope for certain segments of the market. A detailed report highlights a number of interesting trends, the most headline-grabbing being the fact that despite an increase in funding, from $3.3 billion in Q1 to $8.3 billion, 50% of ICOs in Q2 failed to raise more than $100,000.
Other noteworthy statistics include:
- Only 7% of ICOs from Q2 have been able to secure listings
- 55% of all ICOs from this period failed to hit their funding target
- 15% of projects already had a working business, versus 6% in Q1
This latter statistic could be taken as a sign of progress, but as ICOrating.com observes, “The absence of a working business had no effect on fundraising success.”
If You Bought into an ICO in Q2, You’ve Probably Lost Half Your Investment
In Q1 of 2018, ICOs made a median return on investment of 49.32%. In Q2, that figure slipped to -55.38%. It’s hard to tell what’s more surprising: the fact that ICOs lost so badly in
