GreySpark Partners finished studying the ICO market in the past years and their report shoes that almost half of all the ICOs failed to raise required funds in 2017 and 2018. At the same time, 40% managed to raise over $1 million.
The research done showed that 890 token sales did not manage to raise funds. Period. The number of ICOs that went over $1 million is 743.
ROI was also not provided by token projects, especially as more time passed. The issued report used data coming from ICO-Check.com and ICOData.io, recorded until August 2018.
Many market specialists do not trust ICOs anymore and think their future is doomed. Developers now say that having better-informed investors, better regulations and market saturation was what led to many token sales failing. No matter the case, statistics do not lie and the number of ICOs that failed is much higher than what many anticipated.
According to the report, there are many technical issues that appeared. It was concluded that the decline could have been caused by a “lack of traction, disappointing product advancements, scams, difficulties in execution, no market and poor marketing or go-to-market strategy.”
The good news is that there is a market that is now prospering. That market is the crypto-hedge fund. Starting in September, hedge funds that were focused on tokens and crypto projects increased to 146 companies, although there was a clear drop in January. To put matters into perspective, in 2012 there were only 9 such funds.
The crypto-hedge funds are preferred by many investors because of the fact that they are normally made out of longer positions that do involve higher risk.
As a final mention, the analysis is predicting that crypto-hedge funds will keep growing to up to 180 by the end of 2018, which is a great thing since this offers the possibility to make investments for those that do not know much about the crypto market.