A new report from the cryptocurrency research team Diar has found that about 70 percent of all small cap tokens in the cryptocurrency field have lost enough of their values to where those tokens are worth less than the ICOs that started them up. Even with this, there are still many new ICOs coming along.
The report analyzed the 562 ICO tokens that were outside of the top hundred currencies based on market cap. The review looked into the values of the currencies based on their ICO values when those tokens were starting up. The ICO values referred to the amount of money that was raised when getting such tokens ready for use. The analysis found that 70 percent of those tokens have seen losses when compared with what they got out of their ICOs.
The largest loss came from Sirin Labs. The SRN token raised $158 million during its ICO. The market cap of the token is $17 million, thus resulting in a loss of $141 million. PumaPay is another massive loser, as the token for that ICO is at $15 million in its market cap, a dramatic drop from the $117 million that was raised at the start.
Envion has also experienced a dramatic drop in its value as its market cap is at $4 million. This is compared with the $100 million that was raised at the start, thus producing one of the largest drops in value in the cryptocurrency industry.
Some of the ICOs have failed to get anything out of trading. 324 tokens were found in the study to be unlisted on cryptocurrency exchanges. This is in spite of those tokens having raised a total of $2.3 billion in their offerings when combined together.
Meanwhile, 44 tokens that have raised a total of $1 billion have been listed on at least one exchange have not gotten any trading value or only a very minimal amount. Bankera had raised $150 million in particular. The trading volume for the Bankera token has been listed at around $50,000 at the most in recent time. There is no actual market cap value associated to the token; the value is also close to a tenth of a cent.
The ICO Market’s Influence
The report arrives as the development of ICOs continues to move forward, with many new ICOs being offered throughout the year. This year, around $20 billion has been raised by new ICOs. This includes close to $6 billion being raised in June alone. This is based on a report from CoinSchedule. The group has found nearly 800 ICOs so far this year.
The study also includes the $4 billion sale for the EOS token that was credited to this year in the report. The same report also says that a little more than $6 billion was raised last year.
New ICOs Coming
Even as many ICOs are falling apart, new ICOs are still coming out. CoinTelegraph lists several ongoing and upcoming ICOs, including the XERA ICO starting on October 1 and the Code of Talent sale going on October 15. Some extra ICOs are listed to start in the coming year with no end in sight.
