This year is the biggest year for the ICO market yet as ICOs raised more money in just one quarter of 2018 than they did in 2017. However, ICOs success rate is not very impressive at all. In 2017 less than 48% were successful, but with looming ICO crisis, this success rate will further decline in 2018.
This year, ICOs has raised billions of dollars with a promise to create decentralized apps, also known as dApps, for the blockchain industry. However, most of the ICOs that were funded in the last quarter of 2017 and the first two quarters of 2018, still don’t have any products to show to their investors.
According to market experts, most ICOs are now struggling to create any viable product to secure long-term investments. ICOs earned more than $5.8 billion in 2017, and even more is the first two quarters of 2018. However, the dApps products even by some of the largest fundraisers have no significant number of users.
The only success stories are ForkDelta and IDEX, other than that, there are no dApps available in the market that has more than 600 users. Even the companies that are currently listed among top 100 cryptocurrency projects, with advanced technology capabilities and well-known developer communities are struggling to attract users to their dApps. These well-known names that are still struggling include Polymath, ICON, Augur, and Decenterland.
Most of these companies have already developed products based on Ethereum ecosystem. However, the users are still very limited, while most other ICOs and ERC20 tokens even among top 100 cryptocurrency rankings still don’t have any active product in use.
To put it in simple words, the ICO market is showing an underwhelming performance, that in a result is shaking investors’ confidence in ICOs. Many experts believe that this trend, or crisis, will lead to market contraction, also at the time when the value of cryptocurrencies is also decreasing.
Even when 2018 is a success for ICOs when it comes to raised funds, but the trend may reverse following the poor performance of most of the ICOs in the market.