- ICO are raising 58 times less in required capital for their projects according to WSJ.
- ICOs raised just $118 million Q1 2019 vs. $6.9 billion in Q1 2018.
The Wall Street Journal compiled a report recently, detailing that ICOs are raising 58 times less funds, greatly due to the tighter restrictions and unprofitable token launches. This is something seen across the industry globally, given the past number of scams that have done the rounds.
Initial Coin Offerings (ICOs) unfortunately have generated much of a bad name, given the sheer number of ponzi schemes that have run off with investors monies. They have been banned in several parts of the world and in the United States. The U.S. regulator, the Securities and Exchange Commission (SEC) has been very active in shutting down fraudulent and unregistered ICOs.
According to the data provided by TokenData, ICOs raised about $118 million in funding for the first quarter of 2019. This, on its own, seems like an impressive figure until some context is provided. At large comparison, Q1 2018, saw ICOs raise a whopping $6.9 billion, a massive drop off this year.
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