The Class Of 2017- A Year Later
The report published on October 19, 2018, gathered data from 140+ ICO projects that issued their tokens in 2017. It was noticed that 86 percent of the coins have fallen below their initial price at the time of listing.
In December 2017, Ernst and Young (EY) released a report on ICOs that included a total of 372 ICO projects. Among them, a total of 110 projects accounted for 87 percent of funds raised through ICOs. The EY report segregated these 110 projects as “Class of 2017″. The latest report released on Friday compares the present day data with the “Class of 2017.”
Paul Brody, global innovation leader for blockchain technology at EY confirmed that this was worse than what they had imagined. In 2017 the price of bitcoin hit a sky-high with $700 in January to a whopping $20000 in December in the same year. This rise in bitcoin price generated a frenzy among investors. The ones who threw money into any crypto project that came their way.
With many institutions stepping into the crypto market caused the government to put out regulations and take necessary action to prevent illegal activities. The price of bitcoin has slashed since then to a scant $6500. It causes the bear market since the start of 2018.
More often than not, ICOs that issued tokens were supposed to be used as a means of payment on the website that was still under constructions. However, EY found that most companies didn’t even get to building their websites. The companies that did build their websites also start accepting payments in fiats. This inadvertently reduces the value of their own tokens.
The 13-page report says that even the most successful projects fail to make a noticeable impact compare to Ethereum. Ethereum is by far the most successful project which has the most development support. It has sustained its market capitalization in the top for a very long time.
Bordy even said the quality of ICO companies is “much much worse” than the first internet startups of the late 90s. So did your portfolio have any coins/tokens from the class of 2017? How much did you lose?
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