The Biggest Trend You ’ve Probably Never Heard Of: A Status Report on 138 Healthcare ICOs

Discussion and Commentary  The first observation we’ll note is that there has been a substantial amount of healthcare ICO activity. However, we would label the overall performance of the healthcare ICOs as “disappointing”. Only 5 reported positive returns since the date of their listing and 2 in 2018 to-date. The overall ICO market has been declining since January 2018. Monthly funds raised by ICOs are down, and funding has shifted towards a few mega projects (like EOS and Telegram), big private sales, and smart contract platforms. During the bull market of 2017, healthcare ICOs greatly benefited from burgeoning prices and market euphoria. It gave them access to easy capital (often non-dilutive as well), created a buzz around the industry, drove consumer interest in their products, made it is easier to hire top talent, and resulted in happy investors. The bear markets of 2018 have hit healthcare ICOs hard. It has become extremely difficult to raise capital, ICOs don’t have organic user growth from an appreciating cryptocurrency, exchanges slow down listings, team morale suffers, and ICO big investors become unhappy. Moreover, companies in the crypto space have difficulty establishing banking relationships and as a result, many hold their funds raised in cryptocurrencies (i.e., in Ether vs. $USD). When prices fall, treasuries and most important project runways suddenly become much shorter than teams previously believed. As an example, a project that raised $10m late i...
Source: The Health Care Blog - Category: Consumer Health News Authors: Tags: Cryptocurrency Economics Finance decentralization Funding Healthcare ICO initial coin offering network effects Startup token token offering venture capital Source Type: blogs