ICOs Teams Tokens’ Lost $19 Billion in Value
During each ICO, teams leave a certain number of tokens for own needs. Over the past year, the cost of such tokens has fallen by 54% or $19 billion.
BitMEX and TokenAnalyst conducted a study of the ICO market last year. According to the companies, the value of tokens that startups have reserved for own needs has fallen from $24.2 billion at the time of the ICO to $5 billion now. The main reason for sharp drop lies in the general state of the market. Since the beginning of 2018, bears have reigned in the market, and the value of assets falls every day.
But $5 billion is equally a considerable amount. “ICO teams still own about $5 billion of their tokens. And this is the money they received from nothing,” the study says.
Also, according to the study, the teams brought their tokens worth $1.5 billion to external wallets. It may mean the managers sold them in their own interests.
BitMEX and TokenAnalyst claim that the ICO market lacks regulation. Especially it concerns the part of control over tokens reserved for the needs of projects.
- According to the CoinGecko annual report, over the last year, the ICOs raised $16.5 billion. Although in 2017 the amount of raised money did not exceed $5.6 billion. Simultaneously, the tokens return was negative last year and stood at -67%.