Report: German ICO Investors Lost Almost 90% of Funds
October 4, 2018
According to the report by WirtschaftsWoche, investors of German ICOs have lost about 90% of the funds they had put in.
The magazine first compared ICO token prices of Germany-based blockchain startups from their launch to September this year. The cost has turned to shrink by 90% thus having exceeded the downfall index of the major digital currencies at the beginning of the year.
WirtschaftsWoche found out that only 8 out of all ICOs held within the country finished successfully while the most of ICOs by German companies were conducted abroad. For instance, issuance cryptocurrency by Naga listed at the Frankfurt Stock Exchange was executed by its affiliate company Naga Development Association Ltd. registered in Belize.
Remarkable enough is that among huge number of German tokens only two companies could keep its coins stable, namely, Neufund financial platform and Wysker shopping application. As a comparison, currency prices of Frankfurt-based fintech startups Savedroid and Iconiq Lab have plummeted by 40% and 92% respectively.
In addition, in summer 2017 members of the IT association Bitkom told that the majority of Germany’s IT startups still start IPO for fundraising. According to the poll held at that moment, only 9 out of 302 companies have expressed their wish to issue ICO tokens for fundraising.