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While top projects continue to crack $100 million, 1 in 5 are abandoning ICOs altogether
Token Report, the database of verified information on ICOs, today released data on shifting trends in ICO funding. The gap between top projects and mid-tier projects is widening, and more project leaders are abandoning their ICOs altogether. In Q3, about one in five ICOs failed, but that hasn’t dampened hope. In Q4 to date, the rate of new ICOs opening is on pace to reach 500, compared to the 266 that opened in Q3.
Token Report examined ICOs that closed in each quarter of 2017, and ranked them in three tiers by amount raised. The results showed that top ICOs like Polkadot ($142.4 million) and Liquid ($105 million) are pulling away from mid-tier projects like Dragonchain ($13.7 million) and AirSwap ($12.6 million).
Of course, it’s not wise to measure a project’s success by the amount raised, and many projects have come to market with modest fundraising goals,” said Galen Moore, Founder and CEO of Token Report. “For the cryptocurrency economy, it’s important to keep an eye on these trends so both entrepreneurs and investors can make informed decisions.
Token Report also found that the number of projects abandoning their ICOs altogether is growing. While new projects list at a rate of 5-7 per day and often make it to their live date, many shut down their websites or social media accounts before announcing a successful close. In Q3, 15 ICOs canceled, and in Q4, 35 more have already canceled. Yet overall, the ICO boom shows no signs of slowing. So far in Q4, ICOs have raised $1.38 billion, putting them on pace to easily surpass the $1.74 billion raised in all of Q3.