Remember our article ICO Hype: $3 Billion Raised In 2017 published earlier this week? As you notice, we used the word ‘hype’ alongside ICO in the title. Many of you are wondering why, probably. Maybe you are saying $3 billion in ICOs is a good thing. Well… then you will probably have to reassess the situation as the following numbers might not look good at all… on ‘digital’ paper at least.
According to a report published by Token Report CEO Galen Moore on Medium and Bloomberg, fewer than 1 in 10 Initial Coin Offerings currently have a working product. That means only 19 projects who raised money through an ICO have usable tokens… out of 226!
Those 19 worth-mentioning projects, according to the report, are: Voxelus (VOX), PopChest (POP), Wings (WINGS), Spells of Genesis (EDS), Storj (STORJ), Sia (SIA), Augur (REP), Pepe Cash (PEPECASH), Omni (OMNI), Book or Orbs (ORB), Chronobank (LH), Bitconnect (BCC), Kin (KIN), Footballcoin (XFC), NEO (NEO), Nxt (NXT), TenX (PAY), IOTA (IOTA), and Cofound.it (CFI).
Counterparty (XCP) was removed from the list because, as they DO have a working product, not a single ICO was held on the blockchain.
So, what does that actually mean? That over 90% of the completed ICOs have tokens that are purely speculative in nature. No fundamental basis whatsoever… and that includes the biggest names on the market FileCoin which raised $257 million and Tezos ($232 million) in 2017.
What can possibly go wrong right? Just imagine at least half of the money raised by those 90% going down the drain… figuratively speaking of course. Or projects like Tezos or FileCoin who raised hundreds of millions eventually having a working product, but NOT meeting the investors’ high expectations – as Moore pointed out in his report. What would happen?
How are you feeling about the ICO market now?