Nowadays no one is probably surprised that companies launching ICO do not even have a minimally viable product (MVP) or hire developers of smart contracts for only one ERC20-token. This is justified by the fact that the implementation of projects requires funds that can not be collected without conducting an ICO.
According to ICORating, in 2018, 26% of startups had MVP by the time of ICO, 15.5% submitted an alpha version of the product, and 11.2% were able to show beta
According to data provided by ICORating, (all projects adhere to it) investments come first, and only then comes development – and this is considered the norm. In the current year, about 46% of ICO projects were launched completely empty. Therefore, potential investors simply have to believe the words of project managers.
The conducted studies determined a decrease in the average income from tokens, which was 49%, it is 10% less than the indicator recorded in the last quarter of 2017. Moreover, despite a large number of people wishing to earn on the initial token sales, only 21% of tokens came out to the stock exchanges at a time when last year it was 33%. Also, a large proportion (83％) of new tokens are put up for sale at cryptocurrency exchanges at a cost lower than during ICO.
According to ICORating, 34.3% of cryptocurrency funds are investing into cryptocurrencies, and 26.7% are investing into something uncertain
Relying on the statistical data, investment of cryptocurrency funds, with the normal activity of venture companies, show a negative behavior. Thus, there are only 119 cryptocurrency funds left out of 219. At the time of the first quarter of 2018, nine organizations completed their activities, including the Alpha Protocol and the Crowd Crypto Fund. This is not the only loss of cryptology, as analysts at ICORating predict that most of the current backgrounds are closed, due to inefficient regulatory standards that also accompany some problems. For companies that can stay afloat, new horizons will open up, including the management of the market with assets worth $28 billion.
We want to note that the first quarter of 2018 was a difficult period for the cryptocurrency industry: regular hacker attacks on cryptocurrency exchanges, prohibitions and restrictions at the legislative level, a rapid drop in prices and a decrease in capitalization. If we compare this with 2017, then the industry was at the peak of its capabilities. Therefore, experts say that comparing the year 2017 and the first quarter of 2018 is at least incorrect.
Despite everything, the trend of attracting investment through ICO is increasingly provoking interest in unprepared and fraudulent projects. All this points to the urgent need to create adequate ICO rules, without which it will not be possible to increase the efficiency of the industry.