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Initial Coin Offering [ICO] market is down around 3,800% in Q1 2019, finds BitMEX research

Priya

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Source: Unsplash

On May 13, 2019, BitMEX Research released a report on Initial Exchanges Offerings [IEO]s. The report also gave insight into the Initial Coin Offering [ICO] market, with the data showing a significant drop in the funds raised. The report also suggested that some projects opted to hold an IEO to raise money instead of an ICO as the market “dried up following a massive boom” in 2017 and the following year.

The report stated,

“The ICO market is down around 3,800% in Q1 2019 (YoY), based on the amount of capital raised. In this relatively challenging climate to raise funds, some projects have changed the “C” in ICO to an “E”, perhaps in an attempt to assist with raising capital.”

The report also suggested that the concept of IEO was going relatively well in the market as almost $40 million was raised in the past four months. It stated,

“However, we remain sceptical about the prospects for long term investors […]the [ICO] market has dried up following a massive boom in 2017 & 2018.”

Source: BItMEX Research

To add on, the report stated that the investment return of the projects that raised ICOs in 2018 was poor, with several projects plunging by 80 percent compared to its ICO price, considering that these coins are traded on exchanges.



The report also gave a performance data on the top ten ICOs that raised the largest amount of funds in 2018. The first project was EOS; the project’s token is currently the fifth largest cryptocurrency in the market. The report showed that the project had raised $4,234 million funds and the return based on average ICO price was down by 4 percent.

While the second largest project, Telegram that raised $1,700 million, and the third largest project, Dfinity that raised $195 million, do not have a listed coin.

Source: BitMEX Research

Source: BitMEX Research





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Altcoins

Ripple CTO dismisses Coin Metrics report saying it was a ‘timeline issue’, Tron [TRX] futures to soon start trading on OKEx platform and more

Febin Jose

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Ripple CTO dismisses Coin Metrics report saying it was a ‘timeline issue’, Tron [TRX] futures to soon start trading on OKEx platform and more

Daily Crypto News – May 18

1) XRP-backed stablecoin: Kava Labs is developing a stablecoin, USDX, backed by XRP on a Cosmos Zone, which dynamically maintains stability to USD with decentralized mechanisms.

Read more at https://bit.ly/2HE7xAv

2) BitMEX insurance funds: While some panicked when Bitcoin crashed suddenly, others remained calm and assessed the situation. It was noticed that there was a huge sell order on Bitstamp, which pushed the price of Bitcoin by ~20% in a few minutes.

Read more at https://bit.ly/2VNgUaK

3) USDC do not exceed balance of US dollars: News revolving around the USD Coin [USDC] had taken a negative connotation when Coinbase CEO Brian Armstrong was called out for shilling the cryptocurrency. As a way to put any fears or speculations to bed, Grant Thornton LLP, an independent accounting firm released the latest attestation report on US dollar reserves backing USDC.

Read more at https://bit.ly/2Ej5dxM

4) SatoshiPay launches Solar Wallet: SatoshiPay has been working closely and designing micro-payment apps for the Stellar Network. Earlier this year, the micro-payment solution company launched ‘Solar wallet’, a stellar network-based and user-friendly desktop wallet. The Solar Wallet has proved to be user-friendly and easy-to-use and can securely manage funds.

Read more at https://bit.ly/2HrJ6HH

5) Blockstream CSO on Bitcoin: Samson Mow, Blockstream’s Chief Strategy Officer appeared in the latest Keiser Report discussion featuring Max Keiser. Talking about the satellite, Mow said that the purpose of Blockstream satellite was to provide redundancy for the Bitcoin [BTC] network.

Read more at https://bit.ly/2VvuQkY

6) HitBTC is insolvent, claim customers: According to a series of tweets by CryptoMedication, from Zerononcense, cryptocurrency analytics and research firm, the exchange is “insolvent”. The Twitter handler exclaimed his surprise that the exchange was “still in operation” as they had only 350,000 BTCs after their liquidation.

Read more at https://bit.ly/2JtlOTK



7) Weiss Ratings on Bitcoin’s price movement: Weiss Ratings, the crypto-specific rankings company, which, at times has rubbed the cryptocurrency industry the wrong way on predictions, suggested an absence of “manipulation” and termed the fiasco as a “normal market correction”.

Read more at https://bit.ly/2JrYtlE





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