More

    New BitMex Report Shows Crypto Market Crash Not Causal with Financing ICO Projects

    New Report Shows Most ICO Projects Have Been Unaffected by Crypto Market Crash

    A new report shows that most ICO projects have been unaffected by the crash of crypto markets. As cryptocurrency prices have plummeted since January 2018, most ICO projects have been able to maintain a steady course.

    In fact, many ICO projects are sitting on unrealized gains to this day – even with ETH sitting at a price of $230.

    ETH and other popular fundraising cryptocurrencies have lost about 80% of their value since the beginning of 2019. ETH began the year with prices above $1,000. In recent weeks, the price of ETH has slipped below $200 before rebounding to the $220 to $250 range where it sits today.

    Despite the wild swings and price drops, however, most ICO project financing has been unaffected. ICO projects aren’t in a state of chaos. They’re not bankrupt. Instead, most ICO projects have been able to navigate the swings of the marketplace while maintaining steady financing.

    The new report was released by BitMEX Research earlier today. The report examined Ethereum holdings in ICO treasury accounts.

    BitMEX Research first released a report on ICO financing in September 2017. In this follow-up report, BitMEX Research examines how ICO project financing has changed over the last year.

    Here’s how BitMEX Research introduces the study:

    “We look[ed] at the amount of Ethereum raised and the US$ value of the gains and losses caused by changes in the Ethereum price, for each project.”

    ICO Projects Have Sold More than They Raised, Have Unrealized Gains Rather than Losses

    The most surprising part of the BitMEX Research project is that most ICO projects have been totally unaffected by the crash of ETH prices.

    In fact, most ICO projects have been able to sell just as much ETH as they raised (in terms of USD).

    Furthermore, projects are still sitting on realized gains to this day, even with Ethereum sitting at a price of $230 USD.

    This indicates that projects raised ETH at a lower price than it sits today. They bought low and can still sell high on ETH. Contrary to what some believe, these ICO projects didn’t raise substantial funds when ETH was at its peak:

    “We conclude that rather than suffering because of the recent fall in the value of Ethereum, at the macro level, the projects appear to have already sold almost as much Ethereum as they raised (in US$ terms). Of the Ethereum still held by the projects, even at the current c$230 price, projects are still sitting on unrealised gains, rather than losses.”

    In terms of numbers, BitMEX Research analyzed 222 ICOs that have been completed in 2017 and 2018, including the massive ICO from EOS. Here are some of the numbers they came up with, accurate to September 2018:

    • ETH Raised by EOS: 7,211,776 ETH ($3.824 billion USD)
    • ETH Raised by Other ICOs: 7,972,003 ETH ($1.639 billion)
    • Total ETH Raised: 15,183,779 ($5.463 billion)
    • ETH Sold by EOS: 7,211,776 ETH ($3.892 billion)
    • ETH Transferred Away or Sold By Other Projects: 4,113,345 ETH ($1.560 billion)
    • Total ETH Transferred Away or Sold: 11,325,121 ETH ($5.452 billion)
    • ETH Balance Remaining as of September 2018: 3,858,659 ETH ($830 million)

    The USD dollar values above are the dollar values at the time the ICO took place. That’s why the 7 million ETH raised by EOS is worth substantially more than the 8 million ETH raised by other ICO projects.

    The numbers show that ICO companies, in general, continue to have unrealized gains to this day. EOS’s massive ICO also distorts a lot of these figures. The ICO took place earlier this year, when ETH’s price was substantially higher than it was throughout 2017.

    The numbers also show that projects still hold about 3.8 million ETH, or around 25% of the tokens originally raised. In USD terms, the projects have sold about the same amount of ETH as they initially raised – but they still have 25% of their ETH remaining.

    Of course, there are some ICO projects that cashed out their ETH immediately. There are other projects that have gradually sold their holdings over time. BitMEX Research’s report analyzes the industry as a whole. Based on their macro analysis of the ICO space, this is great news for the blockchain industry.

    Conclusion: This is Good News for the Blockchain Ecosystem

    BitMEX Research’s report is great news for the Ethereum ecosystem and the blockchain industry in general. The price of ETH was at $1,400 in January 2018. Since then, the price has slipped to lows under $200 before slightly rebounding to the $230 range.

    Despite this huge plummet in price, BitMEX Research’s report shows that most ICO projects have been able to weather the storm. Not only have these projects weathered the storm, but they continue to sit on unrealized gains even when the price of ETH is at $230.

    While some argue that ICO projects are in big financial trouble because of the falling price of ETH, the BitMEX Research report, which analyzed over 200 ICOs, paints a much more positive picture.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,365FansLike
    2,782FollowersFollow
    4,137FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Galaxy Digital's Mike Novogratz: This Is The Year For BTC Or I Might ‘Hang Up My Spurs'

    Bitcoin proponent, Mike Novogratz is still “most excited” about the world's leading cryptocurrency but “if it doesn't go all out by the end of...

    National Internet Finance Association of China Warns Against Manipulative Crypto Exchanges

    The National Internet Finance Association of China(NIFA) has issued a warning for investors who have been associated with the crypto-verse about the growing risks...

    Cash is King in Coronavirus Ravaged Economy But Bitcoin is “Next in Line to the Throne”: Hedge Fund Manager

    Mark Yusko, the CEO at Morgan Creek Capital Management says coronavirus is unleashing a once in a lifetime downturn. Yusko appeared on CNBC’s “Trading Nation”...

    Bitcoin’s is Gold 2.0; Billionaire Chamath Palihapitiya Lays Out BTC’s Path Forward in Macro Backdrop

    In the latest episode of The Pomp Podcast, host Anthony "Pomp" Pompliano had Chamath Palihapitiya, the CEO of Social Capital as a guest who...

    Binance ‘Leak' Signals Possible Bitcoin Options Trading Launch On The Exchange

    The competition across cryptocurrency exchanges in the crypto derivatives markets is heating up to a boiling point as yet another big player hints at...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.