No one can’t deny that 2017 was the Bitcoin’s year.
With the massive popularity, increased value and trend-setter in crypto world. Bitcoin has been the King of Cryptocurrency.
People can invest in cryptocurrency projects through a lightly regulated process called an “ICO,” or initial coin offering, in which a startup sells its own crypto token to raise money.
Fortune website has investigated all 2017 ICO and their fate in the world of cryptocurrency, citing the data from Bitcoin.com,who surveyed last year’s ICOs. The latter found out that of 902 tracked by TokenData, 142 failed before raising funding, and another 276 failed after fundraising.
To sum up, that’s a 46% failure rate — but wait, there’s more. Bitcoin.com found another 113 projects that it calls “semi-failed,” because their teams have gone off the radar or their community has withered away.
Add those, and the failure rate jumps to 59%. Bitcoin.com says the total funding of failed projects from 2017 was $233 million.
If you will analyze the macro level of the situation, that’s a lot of wasted money, though the failure rate might not seem outrageous for those familiar with startups.
As many as 75% of all startups backed by traditional venture funding fail, and 30 to 40% of those take all of investors’ capital with them. Out of all new companies started in the U.S., a little over 20% fail in their first year.
The ICO numbers obviously beat that percentage soundly, which again, might not seem surprising in such a nascent sector. But the findings are especially disturbing for at least two other reasons.
However, the failure of other ICO doesn’t mean that it will be the end for the cryptocurrency as a whole. With current performance of Bitcoin and other crypto assets, they are still fighting amid the tough regulations, inside and outside pressures.
Then, 2018 will be an exciting year for cryptocurrency. For it will manifest how strong and meaningful they are in the crypto world.