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ICO funding hits 16-month low

ICO boom is coming to an end, with ICO startups having raised just $326 000 000 in August, that is, the smallest amount since May 2017.

That compares with about $3 000 000 000 on average during the first three months of this year.

ICOs based on the Ethereum blockchain were regarded as the main driver of the ether’s price surge in 2017. Now they are being seen as one of the major factors that triggered the ETC price meltdown, as many of such projects cash out to cover expenses, thus having a hand in the current bear market.

July statistics demonstrate no less depressive trend, with the total funds raised dropping to $417 000 000.

Cryptocurrency market in general suffered horrendous decline too, with ether showing the most drastic loss of value, as compared to most other altcoins. Investors in Ethereum believe that the underlying reasons have much to do with the shrinking ICO market and massive fire sales of tokens by ICO founders.