In the first quarter of 2019, ICOs raised approximately $118 million, 58 times less than the first quarter of the previous year when more than $6.9 billion was raised (according to the Wall Street Journal (WSJ) of March 31, 2019).
This drop can be explained by two important factors, the first being the increased caution of investors towards these investments following the regulations made about non-compliant ICOs (or scam). The second important and not the least important point is due to the downward trend in the market over the past year, which does not encourage investment.
The recent TokenData report on more than 2500 projects shows that only 45% of ICOs were successful in raising funds. Most importantly, this report states that only 15% of the tokens issued during the ICOs succeed in reaching the initial prices announced during their ICO on the various trading platforms.
Joshua Ashley Klayman, a lawyer and consultant cited in the article, says that ICOs will disappear, but not the market for digital titles. Indeed, the private sector and government regulators around the world are paying considerable attention to secure token offerings (STOs).
Although all this doesn’t work in favor of ICOs, it is good to note that there are still a lot of ICO projects emerging, and today, the credibility of the project, as well as the team around it, is crucial if you want to raise funds.