Accounting giant EY: Vast majority of ICOs trade below offering price, many worthless

Nearly one-third of cryptocurrencies financed through coin offerings have lost "substantially all value," per accounting giant Ernst & Young in a report published today. EY examined 141 of last year's initial coin offerings and discovered a whopping 86% of them are trading below their offering price. More than 70% of projects have yet to deliver a working product; EY claims this is worse than traditional venture-backed firms. Calling the quality of ICO projects "much much worse" than the late 1990s dot-com boom, EY's Paul Brody, who helps lead the firms blockchain efforts, said, "At least from you could get pets food. They had an actual working business, they had a product.”

Of course, even public stock offerings don't always offer all that stellar returns and in just six months during 2000, dot-coms lost a whopping $1.7 trillion in value.


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(Source: Bloomberg)

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About Author

John Biggs is an entrepreneur, consultant, writer, and maker. He spent fifteen years as an editor for Gizmodo, CrunchGear, and TechCrunch and has a deep background in hardware startups, 3D printing, and blockchain. His work has appeared in Men’s Health, Wired, and the New York Times. He runs the Technotopia podcast about a better future. He has written five books including the best book on blogging, Bloggers Boot Camp, and a book about the most expensive timepiece ever made, Marie Antoinette’s Watch. He lives in Brooklyn, New York. Disclosure: Biggs owns and maintains cryptocurrencies in a private account and has been consulting with startups regarding blockchain-based products. He also edits and writes for startup clients.