New data suggests ICOs just may not be a lost cause…

ICOs are not a lost cause instead there might even be a chance of redemption. Hard to believe? Well, that’s what the data suggests. But before I get into that let me make a point abundantly clear.

ICO numbers are dwindling. That is a fact backed by data. According to InWara’s Q1 2019 report, ICO numbers dropped by over 72% YOY.

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Why ICOs are not a lost cause

While it’s true that ICO numbers have been falling since Q2 2018, it doesn’t mean that ICOs are a lost cause or that the ICO method of fundraising is going away anytime soon. So what’s a better statistic?

“Of all the ICOs launched during a time frame, what percentage of them managed to raise any funds?”

It may come as a surprise but not every ICO project raises funds, in fact usually a majority of ICOs don’t raise funds.

Percentage of ICO that raised funds

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Back in March 2018, only 35% of ICOs managed to raise any funds albeit not the entire amount they were seeking. But in March 2019, this number jumped to about 60%. An increase of 25%. From a majority of ICOs not raising funds to a majority of ICOs raising some funds. The progress is as clear as day.

So ICO number are dwindling but the ones that survive have managed to raise funds. So why is this happening?

One likely reason is that the increased regulatory oversight and lackluster enthusiasm of investors in ICO projects have weeded out fraudulent projects from the market. Enabling more competent and serious projects to take the stage. This is beneficial for investors as the risk involved in participating in an ICO is significantly reduced.

New data suggests ICOs just may not be a lost cause… was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.