The first quarter of 2018 has been rough on cryptocurrency markets, with nearly $500 billion in value lost since early January. While established projects have certainly been hit hard, the once lucrative ICO market has begun to show cracks. According to a study published by Bitcoin.com, 76 percent of the 74 projects that staged an ICO in 2018 are currently underwater, or trading below their initial listing price.
The 56 exchange listed ICOs that are trading at a loss have an average USD return of 0.45x. (ICO Stats calculates its ROI based on the token’s pre-sale price, rather than the public sale, so the average return for all 76 ICOs is in fact slightly lower than stated.)
While these projects are down on the year, it is important to note that Ethereum has dropped over 50 percent from January highs, which subsequently reduced the ROI for every ICO on its network. A few notable projects that have conducted ICOs in 2018 include trade.io, AppCoins and Bread.
In 2017, the average ICO ROI was 573 percent according to Coinist.io.
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Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.