Telegram founder Pavel Durov
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ICOs Are Going Extinct. What's Next?

David Rosh Pina
25 November, 2018
1 min read

The bear market is changing the plans of a lot of people, first and foremost the people behind ICOs. The news of the death of the ICO might not have been as exaggerated as originally thought. ICORating, one of the leading authorities in ICO research and listings, has published a paper analyzing the performance of the ICO market in the third quarter of this calendar year. The ICORating analysts concluded that Q3 2018 was not as successful as Q2 and Q1, raising only $1.8B. ICOs raised more money in Q1 2018 ($6.3B) than the whole of 2017, and the figures continued to grow in Q2 ($8.35B). New data by cryptocurrency trading platform BitMEX  revealed on November 21 states that at least 12 Initial Coin Offering (ICO) projects that raised over $50M in their token sales have yet to launch.

Who's Who

Well-known projects such as TelegramFilecoin, and Overstock’s tZero among the big-ticket ICOs have still yet to determine when exactly their native token will go live. Following almost 12 months of bear markets in cryptocurrency, many projects have hemorrhaged money, with previous research by Diar noting around 70 percent are now worth less than what they raised during their ICO funding. Other ICOs have since fallen foul of the law, with both Paragon and Airfox receiving orders to repay millions of dollars to investors by U.S. regulators, who found both guilty of selling unregistered securities in the country.

Stan Shepherd, CEO of healthcare ICO iAM, who is aiming to raise $30M, is optimistic in the face of adversity. “You can postpone forever. We haven’t got a solution that has been looking for a problem. We got a solution to an existing problem. Who knows what the markets are gonna do? We think the underlying logic of what we are doing is so strong, we are not gonna be blown right or left by current trends,” he said. Shepherd’s bravado is set on a simple principle: “We see tokenization as fundamental to healthcare economy.”

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