46% of Cryptocurrency ICOs From 2017 Have Failed

46% of Cryptocurrency ICOs From 2017 Have Failed. The number of initial coin offerings or ICOs has been increasing over time as more groups are aiming to get their own cryptocurrencies and blockchain projects underway. However, these projects have not necessarily proven themselves to be fully viable or profitable.

Although these ICOs sold their own tokens as a means of raising money, the ICOs did not work as well as many people might have hoped they could have.

The TokenData tracking site found that nearly half of all cryptocurrency ICOs that have been released in the last year failed. The site stated that 902 ICOs were released during the past year, although that is an approximate number, what with there being a chance that TokenData did not actually get enough information on some of the ICOs that were released. 46 percent of the ICOs did not make it out of the year intact.

142 of the ICOs listed failed before they could raise any funds. Meanwhile, 276 other ICOs did make it to a fundraising stage, but those ICOs also fell apart and ended without anything coming forward within the efforts involved here.

Another 113 ICOs have also been deemed by TokenData as being “semi-failed.” This means that the people responsible for producing the ICOs in question have gone away and are difficult to find online. The communities to those offerings might have also vanished.

Although nearly half of all ICOs failed, the failure rate is still lower than the rate for most other startup businesses. It is estimated that around three-quarters of all startups in the United States fail even when they get regular venture capital funds for their efforts.

What Caused the Struggles?

Although it is difficult to try and figure out what precisely caused these ICOs to struggle and fall apart, there are various problems that could be considered. The extensive number of ICOs on the market might have made it harder for people to identify them. There might have also been some confusion among people over how well these ICOs are laid out and how they work.

There have also been concerns on the market over how some ICOs may be interpreted as scams. This comes as many of these ICOs are run by groups that are not giving out enough information on what their ICOs are for or why they are asking people to get money out.

Effects of the Failures

The failed ICOs raised around $233 million in total funds. Some of the ICOs did not produce any products although it is unclear if some of them were supposed to have done so.

Some of the ICOs are believed to be scams in that the money that was raised was never given back to the people who sent it out. However, most of the ICOs involved appear to have given the funds back to the people who participated. These include ICOs that might have accepted deals to take money from people but never actually took that money because their plans did not move forward as well as they had hoped.

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