Why 2018 ICOs Flopped
The current market situation has complicated matters for token sales. In 2017, conditions were much better with a guarantee of making profits. In 2018, ICOs that had brought in millions performed poorly leading to huge losses with the bear market taking the blame.
However, poor structures like lack of marketing are to blame for the disastrous performance by some ICOs. Here are notable projects that were hyped this year but later performed poorly.
Gems received much hype in 2018. The project was under the stewardship of brothers Rory and Kieran O’Reilly. The selling point was the decentralization aspect. For one to be part of the project, all they had to do was promote the project through social media and writing blog posts on different forums.
It later emerged that Dutch auction would be deployed to carry out the ICO for maximum profit raising $150 million. However, it did not have the backing of crypto lovers. The proprietors also managed to hold 75% oftokens to themselves, something that led to outrage.
Elsewhere, Bee Token also received much hype during the launch. However, things went south the moment it launched after it was oversubscribed. Everything appeared to be in perfect condition until hackers struck.The hackers managed to take over the whitelist and distributed it through phishing email on the first day. However, Bee Token downplayed the hack. Despite recovering later many questioned the handling of the incident.
Rentberry is another ICO project that largely flopped. The rental project managed to raise over $30 million owing to its market experience. However, the project was hit by a poor marketing strategy.
Narrative Network, the content website was hailed as the new next Steem. The site used cryptocurrencies for payments. However, it flopped before gaining anything. The flop has been attributed to the switching from Ethereum blockchain to Neo. It argued that the switch was due to stability issues. Notably, a limited number of firms had conducted ICOs on Neo blockchain. The network did not support many hence the flop.
The firm later raised about $14 million, although their target was $22.8 million. The team retained 50% of tokens minted.
Lungo was accused of creating brand confusion through its logo when itlaunched. To marketers, it was dubbed as a decentralized wifi network. However, MVP is yet to be released, with the firm affirming that the value will turn out positive.