As per the reports of ICORating – a crypto-based market analysis firm, the amount which was raised from the ICOs in the months July – September dropped by a 48 percent compared to what it raised in the months’ span April – June this year. There has been seen a tremendous drop in the value of ICOs in this year’s third quarter.
As per the reports, in the third quarter (Q3), only half of the ICO projects were managed to cross the mark of $100,000 United States dollar, and only few ICO projects were able to make a mark on crypto exchanges. The numerical analysis is; only 24 got listed on exchanges among the total 597 ICO projects. The exact data shows that only 4 percent of the announced ICOs were listed on the exchanges.
Startups: Idea but where is Vision?
As per the reports of ICORating, around 76.15 percent of the startups are generating money with just an idea, rather than having a product which some functionality. The above statistics showed an increase of 18.72 percent from the second quarter. However, such projects fall in the category of initiatives those are unsuccessful, that means around 72 percent of projects like these failed to raise over 0.5 million United States dollar.
More facts about the projects show that around 10.22 percent of the projects showed MVP (Minimum Viable Product). There are 5.79 percent projects that are in the beta phase, meanwhile, the percentage of projects in alpha and code phases is 4.77 percent, and 1.7 percent respectively.
Third Quarter: Major Disappointment
There is nothing to be cheered about in the third quarter. The media return from ICO tokens was -22 percent, and around 79 percent of the token are trading below their ICO price. In the same quarter, there are close to 597 projects that are reviewed. Still, the disappointment is high.
ICORating further added that the third quarter market shows a disappointment in the ICOs trading. A drop in return for participants in ICOs, lack of transparency, and down trend of the crypto market is some reason behind the failure.