According to a new study conducted by the consulting firm GreySpark Partners, almost half of all ICO in 2017 and 2018 are unable to raise the necessary funds, the remaining 40 percent collected more than $ 1 million each.
The company has studied the market the ICO over the past few years, and found that as many as 890 projects were not able to collect any funds at all. However, other 743 ICO project has collected 1 million dollars (minimum) each.
In GreySpark note that there is very little in the ICO to provide a positive investment return, especially over time. The study is based on data ICOData.io and ICO-Check.com until August 2018.
Among the threats that may reduce the interest in the ICO, various experts have called the awareness of investors, the tightening of regulatory norms, and even a glut in the market. The authors of this study point to a number of other reasons of a more technical nature, which may also adversely affect the ICO market: lack of interest from consumers, dissatisfaction with the product, difficulties in the implementation of projects, lack of strategy to market, etc.
However, despite the drop in the cryptocurrency market and a downturn in the market ICO, there is one market that seems to be flourishing is a cryptocurrency hedge funds.
According to the report, as of September the number of hedge funds aimed at a cryptocurrency projects and tokens that are significantly increased to 146 companies, despite the decline in this number in January 2018. Recall that in 2012 there were only 9 of cryptocurrency hedge funds.
Unlike traditional hedge funds, cryptocurrency hedge funds mainly invest in long positions, and this involves higher risks.
According to the study, by the end of this year, the number of cryptocurrency hedge funds will increase to 160-180 pieces.
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