Last year, the cryptocurrency space witnessed a boom of Initial Coin Offering [ICO]s fundraising, with some of them making to the headlines because of the billions of dollars which were raised through them. In addition, most of the tokens sold during the ICOs are ERC20 tokens.
Some of these projects hit the high road like Tron [TRX] and EOS and they decided to opt out of the platform onto their own platform. Some of them, plunged before they could make it to the mark and other turned out to be scams.
Moreover, the buzz of the ICOs went up to such an extent that it drew the attention from regulatory bodies as well with some enforcing rules which had to be mandatorily followed by start-ups opting for ICOs. However, irrespective of all the attention, this year seems meek for the ICOs as research suggests that fundraising has been seeing a downward trend in the past couple of months.
According to Autonomous Research, as reported by Bloomberg, ICOs fundraising has collapsed to its lowest in the month of August 2018. The research states that start-ups have been able to only raise up to $326 million in August opposed to its peak in the month of January 2018, more than $3,077 million.
The highest ICOs raising this year is recorded to be at the beginning of the year. In the month of February and March 2018, start-ups were able to raise around $3,010 million and $2,783 million respectively.
This comes in the limelight right when Ethereum [ETH]’s price hit its all-time low. Most of the ICO projects are based on the Ethereum platform and some reports suggest that the downtrend of Ethereum is mainly because of the ICOs. It is believed that these ICOs are selling the tokens which they raised either because of the failure of their project which met a dead-end or because they are undergoing a loss because of the bearish market.
Recently, the CEO of eToro, Yoni Assia said that Ethereum is the most used smart contract in the space and is bullish on Ethereum. However, Moshe Hogeg, the CEO of Sirin Labs stated that there will be a lot of dApps build on the Ethereum blockchain in the future.
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