According to new data, initial coin offerings (ICOs) aren’t as popular as they once were in the crypto arena, and prices of respective ICO projects have fallen by approximately 95 percent or more.

From Crypto Riches to Rags

There was a time when the crypto space was wrought with ICOs, and their popularity was at an all-time high. The process of an ICO seemed simple enough. Most of the time, a new business venture or startup sought to raise capital by offering investors who pooled money into their projects access to a special, newly-designed cryptocurrency that could allegedly grant them access to the company’s goods and services. The startup in question earned the money it needed, and investors now had a new coin they could add to their profiles. It was a win-win situation – at least they thought…

Over the past year, ICOs have garnered a somewhat nasty appearance to digital currency enthusiasts. Many of the companies that have held ICOs have turned out to be fake or fraudulent, disappearing only months into their operations and running away with investors’ hard-earned cash. They end up with riches in their pockets, while all their investors are left with a useless coin and a darkened future.

How Much Was Lost?

It is estimated that roughly $500 million or more has been lost to phony ICOs in 2018 alone. That’s more than triple the amount of money lost in 2017. In fact, things have gotten so bad that the Securities and Exchange Commission (SEC) is now taking a harder stance against ICOs and the companies that potentially fail to properly register them.

This is likely the reason behind the sudden downfall in most ICO prices. Recently, venture funds like Pantera Capital have claimed that approximately 25 percent of the recent ICO projects they’ve invested in were either fake or did not adhere to present SEC rules and regulations. Thus, they face two potential consequences: they’ll either be forced to pay back their customers, or they’ll be shut down completely.

Altcoins Are Victims, Too

At the same time, the crypto space is trapped in wintery conditions. In examining the current prices of bitcoin and its competing crypto-cousins, one can see that the prices of virtually every coin in existence have been affected, with entities like Ethereum and EOS being the hardest ones hit. Ethereum, for example, has dropped by roughly 94 percent since the beginning of the year, while EOS has fallen by over 91 percent.

Could ICOs make their way back into a positive limelight? Post your comments below.

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