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Downtrending Initial Coin Offering Funding Levels are Cause for Concern in Ethereum and EOS

Sep 27, 2018

  • August’s Initial Coin Offering (ICO) funding level of USD$337,453,464 is the lowest monthly funding ICOs have received since May 2017. 
  • Decentralized platforms like Ethereum (ETH) and EOS (EOS) offers developers an opportunity to build out decentralized applications (dApps) on their platforms while raising funds via ICO.  
  • Both cryptocurrencies’ prices are correlated with ICO funding levels. As can be seen in the chart below, peak ICO funding levels occurred during December 2017 and January 2018 while ETH traded at its all-time high and EOS traded at its all-time high (at the time). 
  • ICO funding levels trailed off in March and April of 2018 while the price of ETH and EOS also sank. 
  • As ICO funding levels increased in May and June of 2018, ETH and EOS observed price rallies. 
  • It appears ICO funding levels are downtrending as we near October. Funding levels of just USD$31,075,391 so far in September and regulation crackdowns on ICOs further support the downtrend. 
  • Ethereum and EOS prices have benefitted from high levels of ICO funding in the last year and a half. If ICO funding continues to fall off, ETH and EOS prices may weaken further

Source: ICOdata.io and Coinmarketcap