Saturday, October 19, 2019

Decline in crypto and blockchain investments, EOS raised just $2.8 million in the second ICO.

The Takeaway:

EOS only managed to raise 2.8 million dollars in the second ICO after the completion of the 223rd auction cycle on 19th August. In 2018 the company raised a whopping $4.1 billion in an ICO without having a live product. Several reports show that there has been a huge decline in investments in blockchain and crypto-related businesses.

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In 2018 EOS grabbed everyone’s attention after it raised 4.1 billion dollars in an ICO without having a live product. But in the second ICO which took place in the form of daily auctions only raised $2.8 million. LiquidApps is building a second-layer solution EOS that would run on the company’s Dapp token.

The daily auction has been running since February and completed the 223rd auction cycle on 19th August. And so far only 2.8 million dollars worth of cryptocurrency has been sold. According to a Wall Street Journal report, in six months, Block.one had raised $700 million. 

There has been a decline in investments in ICOs this year as compared to 2018 and 2017. A report by PwC shows that initial coin offerings (ICO) raised in the first half of 2018 was around 6 billion dollars as compared to $346 million of this year. This shows that investors are not investing in cryptocurrencies and blockchain businesses as they did a year ago. This could be due to the bearish run that crypto market went through. 

A Crunchbase report showed that so far in 2019, companies raised a total $3.38 billion including ICO and private fundings. And so far this year investors have put $2 billion into rounds for companies tied to crypto and blockchain excluding ICOs. In 2019 the largest crypto-related round was for Robinhood when the company secured $323 million. 

There has been a decline in the investments in crypto and blockchain startups, but this could change in the coming time as the adoption of cryptocurrencies increase around the world. Let us know in comments, what do you think is causing the decline in investments?

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jesse Kirby
Jesse Kirby
Since his childhood days, Jesse was fond of writing and learning new things. He developed a special interest in bitcoin back in 2011 and started to get deep into the crypto space. After completing his masters degree from Bnos Menachem School, New York, Jesse became a full time writer and crypto analyst.

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