Who says initial coin offerings are such great investments? Not Ernst & Young. A new report from the accounting and consulting firm found ICOs that raised capital in 2017 have done “little to inspire confidence” a year later.
The report revisits the same projects the firm analyzed in December. The 141 ICOs analyzed represent 87 percent of total ICO funding in 2017.
Of these, 86 percent of project tokens are trading below their listing price, with 30 percent having lost “substantially all their value.” EY also found only 29 percent of studied ICOS have working products or prototypes, though that was up 13 percent from the end of last year. But 71 percent of projects have “no offering in the market at all.”
Of those projects that do offer a functional product or prototype, seven reportedly accept fiat currencies as payment alongside their tokens, which E&Y said “reduces the value” of investors’ tokens.