2017 was the year of initial coin offerings (ICOs).
Starting from August 2017, the ICOs – mostly held by new ventures – saw an increase in the amount being raised for collective ICOs per month.
Where the collectively raised amount by ICOs was recorded to be around $329 million in August 2017, it went on to reach around $773 million in September, $829 million in October, and stood at $823 million and $1217 million in November and December, respectively.
However, that is where the dent came in, and from January 2018 and onwards, not only the collectively raised amount started to drop, but the number of ICOs being held also got affected.
The phenomenon has now reached a point where ICO statistics are at a record low of 6 months.
scams, failed projects, and regulatory concerns cause ico values to drop
The drop in ICO statistics is not just due to a lower level of interest by investors, but also seems to pertain to the scams and failures that came to light, the overall air of uncertainty that started surrounded the aspect of ICOs amidst the drop of Bitcoin’s value, and the final nail in the coffin, for now, seems to be the statement from the U.S. Securities and Exchange Commission (SEC) on the status of ICO and cryptocurrency as securities.
While the drop in ICO values can be easily attributed to the aforementioned reasons, the last one is what would have the most repercussions on the industry, as the situation which arose from it is still unfolding – with a Congressional hearing held earlier this week that posed more questions than answers to the cryptocurrency community.
It remains uncertain to say how ICOs would look a few months from now, but from what can be seen at the moment, their present certainly looks bleak.