The ICO boom has been on a decline for over a year, with no signs of improving in the short-term. Mostly due to the market downturn and also a considerable rise in regulatory scrutiny on the industry as a whole. Many of the token funds raised back during the ICO hysteria have lost most of their post-offering value. Although fundraising has dwindled, activity within the crypto space has remained active.
To put things into perspective, more than $900 million ended was raised during token sales in June 2018 alone. As a whole, ICOs raised more than $7.8 billion through a total of 1253 projects in 2018 with every month except December raising over 200 million. So far in 2019, only in the months of March and May, funds were raised above 100 million.
It is no surprise to find a correlation between the fundraising market and the overall crypto market sentiment, the crypto market behaviour is closely tied with emotion. In a rising market, people tend to become greedy resulting in FOMO (Fear of missing out). Likewise for a plunging market, people often sell their coins in an irrational manner when seeing the red.
An interesting 3rd party indicator, Fear and Greed Index takes into account multiple data sources such as bitcoin volatility, market volume/momentum, social media, surveys, bitcoin dominance and trends. Using these data, the index translates into a simple meter from 0 (Extreme Fear) to 100 (Extreme Greed), two simple interpretation would be:
Extreme fear = buying opportunity ( Investors are too worried )
Extreme greed = market due for correction ( Investors are too greedy )
For the past year, we have been experiencing a fearful market based on the Fear and Greed Index which is aligned with the decline in funds raised. However, despite the poor macro environment Kozjin managed to raise US$15 million. In comparison, a high profile IEO on Binance such as BitTorrent only raised US$7.2 million. Furthermore, our token price has appreciated over 50% since we have listed on Digifinex.
Once again we would like to reiterate our appreciation for the support given by our community. Stay tuned for the upcoming updates for our app and the new services that come with it!
Join us at Kozjin, as we welcome people from all walks of life, industries and experiences — we want to hear what you think and be part of this journey. Like our facebook page or join our telegram group for latest updates.
*Statistics are taken from ICO data
