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Over Half Of All ICOs Failed In Q2 2018 Market

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Icorating.com, a high-quality source for independent research into the ICO market, has published their quarterly analysis of ICOs.

There are several important findings in the report, but perhaps none more notable then the fact that 50% of ICOs failed in Q2. Icorating.com attributes this mainly to the fact that half of the projects couldn’t raise more than $100k.

Another important finding was the fact that only 7% of all announced ICO tokens were able to be listed on exchanges. They also found that there was an average 6-day listing time increase compared to last year for tokens on exchanges.

The general view of this report seems to be an increasing bifurcation of success and failure. The projects that hold successful fundraises raise enormous sums, (with EOS being the most obvious example). The ones that don’t, tend to flame out.

This is reinforced by data in the report that the top projects raised an average of $50,000,000 during the ICO. While this is an eye-popping sum, it’s worth noting that the report mentioned that average ICO duration increased by 10%. This is presumably indicative of an ICO market that is becoming less of a Wild West.

Interestingly, the actual number of projects who had an already-operating business represented only 15% of the total ICOs.

Although there does seem to be a common view in the crypto landscape that the days of just holding an ICO with a white paper and idea alone are over, the data in the report showed that whether or not an ICO was held by an existing business in Q2 had zero impact on whether or not the fundraiser was successful.

Whether this is a reflection of a still-new market that has not yet adopted accepted funding norms remains to be seen. But it does give hope to promising projects without sufficient capital, (which in theory was the entire purpose of ICOs in the first place.)

That said, projects in the idea stage did tend to aim for (and raise) less money then those with existing businesses. Specifically, these idea stage projects raised an average of $4.5 million USD/raise.

The vast majority of funding for projects came from North America, 64.67% to be exact. Asia-based projects meanwhile showed an increase in funds raised, but also showed fewer projects seeking capital overall.

This could suggest an approach of “quality not quantity” in the region, although the truth of this remains to be seen as the projects rollout.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Stellar Price Analysis: XLM/USD Has the Potential for a Short-term Rally, Though Bearish Set-up Eyed

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  • Stellar’s XLM potentially has further room for upside, within the short-term view.
  • Danger still looms for XLM/USD, as the daily chart suggests of a bearish technical pattern set up.

Steller’s native token XLM, has failed to commit to any sustained trend. This has been the case since the start of July. Bull rallies that have been witnessed were quickly sold by the market bears. This led the market to trade within a generally long running form of consolidation. Price action is narrowing, given the unsustainable short-term trend runs that have been witnessed. It comes as somewhat of a surprise, as the Stellar foundation have certainly been busy.

Stellar Developments

It was reported recently, blockchain security company BitGo, announced their support of Stellar Lumens (XLM). Being added to the BitGo’s list, Stellar now receives custody solutions. Their users will be able to generate wallets for Stellar Lumens. This is said to be starting at some point within the next couple of weeks. Elsewhere, as previously reported, the Stellar foundation at the start of this month released their heavily anticipated decentralized exchange, StellarX.

4-hour Chart Technical Review

XLM/USD 4-hour chart

Looking via the 4-hour chart, price action has formed a bullish pennant pattern. This comes after the surge higher between September 20-23. XLM/USD has since entered consolidation mode, trading within a range-bound nature. The price is coming very much towards the end of this technical pattern seen, raising the case for an imminent breakout. Near-term support can be observed around $0.2350 area. This is the lower tracking trend line of the mentioned pennant. A failure of the support could very likely see a fast fall to $0.2050. XLM/USD was last trading in this territory between September 12 – 20. The mentioned period was during a time of consolidation, prior to the mentioned breakout higher.

Resistance is seen just ahead of the current price. The above descending trend line of the pennant pattern is tracking around $0.2460-70. Enough bullish momentum to see the breach would likely force the price running to $0.2650. This is seen as an area of resistance on the 4-hour chart view. Looking further to the north, eyes would be on the supply heading into the $0.3000 mark.

Daily Chart Technical Review

XLM/USD daily chart

Taking into consideration the 4-hour chart view, there is still room for another squeeze higher. Despite this, danger appears to still be looming for XLM/USD. Risks on the daily chart point to the downside. The view of this is that a longer-term bearish pennant pattern is containing the price. XLM/USD support on the daily chart can be seen just sub of $0.2000. A long-running supporting trend line can be seen. The price having required assistance on June 29 and several occasions from September 8 – 12. To the upside, resistance can be seen around $0.2900. XLM/USD was rejected already on a few prior occasions, by the above descending trend line. July 25-2 and then most recently September 23, all saw respective bull runs halted.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 33 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Bitcoin Cash Price Analysis: When is BCH/USD Taking Another Extended Move Higher?

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  • The Bitcoin Cash price behavior suggests another imminent breakout is likely. Upside surprises appear move likely than any potential downside breakouts.
  • BCH/USD continues to move within a bullish pennant pattern formation. Narrowing price action indicates a breach is near.

The Bitcoin Cash price after the huge surge to the upside on 26th September, attributed to the Bitmain IPO news, has remained elevated. Risks appear tilted to the upside, given current price behavior and technical patterns observed. Outside of the technical view, news flow and updates have remained positive around Bitcoin Cash.

News Flow Remains Positive

Bitcoin Cash adoption continues to take place. It was reported that the events ticketing company, Bigtickets.com, has expanded its payment options, with acceptance of cryptocurrency. Customers will be able to pay using Bitcoin Cash. The CTO said “We know our dedication to innovation is deserving of a secure and seamless purchase method for our event attendees. The use of Bitcoin Cash is a major social trend we’ve been following. Therefore, we’re excited to be one of the first event ticketing platforms in the United States to accept the burgeoning cryptocurrency,”

Elsewhere, earlier in the week, TD Ameritrade, announced it is investing in a cryptocurrency exchange platform, ErisX. This will be facilitating a range of products, including crypto futures contracts. Fortunately for Bitcoin Cash, it has earned its way into the top 4 cryptocurrencies by market cap. Given its status, Bitcoin Cash will be one of the crypto futures products offered by ErisX.

This follows news back in August, Crypto Facilities announcing a Bitcoin Cash futures product. Crypto Facilities are regulated by the UK Financial Conduct Authority (FCA). The move came given Bitcoin Cash has a growing presence and acknowledgement across the market. The introduction of Bitcoin Cash futures is joining the company’s other crypto-based products.

Near-term Analysis (60-minute chart)

Eyes are locked on BCH/USD movement within a bullish pennant pattern formation. Price action is well-supported by the lower trend line. It for now remains within consolidation mode, after the strong surge on 26th September. The price is moving towards the end of the pattern, into a narrower range. This behavior suggests a breakout could very much be imminent, subject to bullish momentum.

BCH/USD 60-minute chart

Resistance to the upside is seen at the above trend line of the pennant, $523. Given the pole of the mentioned pattern, the breakout may be chunky. A retest of the supply around $640-$660, will therefore be the likely first target area. The price last traded in this region from the 1st to the 4th September. Support is eyed around $510-509, as mentioned above, the lower trend line of the pennant.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 33 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Cardano Price Analysis: Imminent Breakout Anticipated, with Eyes on Another Bull Run

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  • The Cardano (ADA) price has been showing some promising signs, following the project’s 1-year anniversary.
  • ADA/USDT is near the end of a triangular pattern, which can also be perceived as a bullish pennant pattern.

Cardano a few days ago celebrated its one-year anniversary. It is still very much a new project to hit the industry. There are always new technologies and cryptocurrencies cropping up, so it is important to review what purpose do or are they going to serve. It does appear Cardano community members are looking forward to several upcoming developments from the foundation.

What Is Cardano?

Cardano is very much like Ethereum – a smart contract platform. The technology is much focused on scalability and security via a layered architecture. As such, it is the first blockchain platform to evolve out of a scientific philosophy and peer-reviewed academic research. A large innovation of Cardano is that it will balance the needs of users with those of regulators, and in doing so combine privacy with regulation. Its cryptocurrency is ADA, which is currently the ninth largest by market cap.

Recent Updates

The organisation behind Cardano, IOHK, has released a new project known as ‘Cardano Rust’. This will be a large helping hand to developers, who want to build products for its blockchain. The effort is essentially providing the toolbox for developers, with a library of functions that they can use to build their decentralised applications for Cardano and facilitate integration.

Technical Review

Looking at Cardano (ADA) technically vs. Tether (USDT), it is down a chunky 95% from the 1st January 2018. This move largely following suit of the general strong bearish trend, seen across the market. Since September, this price has shown some positive signs, and a willingness to make breakout from the bears paws. ADA/USDT produced a double bottom pattern on 18th September, which saw the take-off. It went on to gain over 50% up to $0.0939, from the low within $0.06 territory, moving into the $0.09 area. The price has since eased somewhat, but is still up over 30% from the mentioned low area.

ADA/USDT 4-hour chart

Current price behavior has formed a triangular pattern, as it narrows within this range-bound form. It is very much coming to the end of this, looking more and more likely to a breakout. This formation could also be perceived as a bullish pennant. The big bull run from the above-mentioned double bottom, provides the substance for the pennant view. Near-term resistance is seen just ahead at $0.0830, with support at $0.0797. Another test to the upper descending trend line, could see a fast breakout up towards the supply at the 23rd September high, $0.0939. Failure to see enough bullish momentum for a breach, could see a slip down to the below demand area, $0.0750-40.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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3 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 5 (3 votes, average: 5.00 out of 5)
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4.5 stars on average, based on 33 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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