A statistic of a dataset of ~2400 ICO shows that
only 44 % of the projects were still active 120 days following the end of their fundraising campaign. On June, a study by PwC found that out of a dataset of ~3500 ICOs,
“only 30 % of those have closed successfully” or “lost momentum.”
As the article below is pointing out it seems that finally, entrepreneurs are turning to traditional VC to fund their startups
Abstract
Initial coin offerings (ICOs), sales of cryptocurrency tokens to the general public, have recently been used as a source of crowdfunding for startups in the technology and blockchain industries. We create a dataset on 4,003 executed and planned ICOs, which raised a total of $12 billion in capital, nearly all since January 2017. We find evidence of significant ICO underpricing, with average returns of 179% from the ICO price to the first day’s opening market price, over a holding period that averages just 16 days. Even after imputing returns of -100% to ICOs that don’t list their tokens within 60 days and adjusting for the returns of the asset class, the representative ICO investor earns 82%. After trading begins, tokens continue to appreciate in price, generating average buy-and-hold abnormal returns of 48% in the first 30 trading days. We also study the determinants of ICO underpricing and relate cryptocurrency prices to Twitter followers and activity. While our results could be an indication of bubbles, they are also consistent with high compensation for risk for investing in unproven pre-revenue platforms through unregulated offerings.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3182169The chart below plots the number of ICOs captured by Crunchbase which raised $25 million or morehttps://news.crunchbase.com/news/crypto-startups-pull-back-on-raising-big-icos/
