The slowing down of the crypto market has taken a severe toll on projects which were planning or in the course of their initial coin offerings. The funding through the ICO route has seen the hardest fall in 16 months.
According to a data compiled by Autonomous Research, and reported by Bloomberg, the startups have managed to raise only $326 million in August 2018, the smallest amount since May 2017. In the first three months of this year, startups have raised $3 billion on average, the period when the cryptocurrency market was at its peak level or the euphoria level was highest.
According to the report, the surge in the ICO market in 2017 was mostly due to the ETH price surge. But now, as the crypto market continues to lose value including ETH, more and more projects are cashing out their ICO proceedings to cover their expense and also to limit the downfall.
Also for the rout in the ICO market is due to stiffening stance of legislators and regulators globally regarding ICOs. Members of European Parliament is suggesting regulating of ICOs as reports on fraudulent ICOs have risen significantly.
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