Of the initial coin offerings that blasted onto the scene in 2017 along with the price of bitcoin, 46 percent have failed.
That’s according to Engadget, which — citing data from TokenData — reported that of the 902 ICOs in 2017, 46 percent have failed. Among that percentage, 142 never got the funding and another 276 have faded away or were scams. What’s more, the report noted that another 113 ICOs have stopped talking about their project online or haven’t had enough adopters that success will be likely. Of the survivors, the report noted that only a few have raised more than $10 million via an ICO.
According to Engadget, excluding the ICOs that were outright scams, it’s not surprising that many of the ICOs and the virtual coins failed to take off. Many were focused on niches such as dentistry or trucking, while others were riding the coattails of other successful tokens and thus didn’t stand out enough to get traction. The report noted that ICOs remain popular this year, but there’s no guarantee that they will have a better go at it.
Earlier this year, even as the price of bitcoin plummeted, Eastman Kodak announced the launch of its cryptocurrency, which the company is calling Kodakcoin, saying it will be “a photocentric cryptocurrency to empower photographers and agencies to take greater control in image rights management.” Meanwhile, late last year, Long Island Iced Tea Corp. announced that it would change its name to Long Blockchain Corp. and focus its business on blockchain technology. Shortly thereafter, shares jumped 300 percent, Reuters reported. While Long Island Iced Tea Corp. is looking at specific opportunities to grow its blockchain business, it won’t be exiting the beverage industry. The company still plans to maintain its beverage business, in which it sells Long Island Iced Tea and Long Island Lemonade. Fast-casual restaurants have also launched their own cryptocurrencies. Hooters investor Chanticleer Holdings managed to boost its shares 41 percent after announcing plans to launch a blockchain-driven loyalty program. Customers who dine at one of Chanticleer’s nine Hooters restaurants will receive crypto cash back in Mobivity Merit tokens produced in conjunction with Mobivity Holdings. Coins can be mined, saved, redeemed for future meals at any of Chanticleer’s brands or traded with other customers.