According to ICORating, 64 percent of all attempted ICOs failed and startups raised 48 percent less through ICOs as 2018 came to a close. As a result, many companies are now pivoting to raise money through security token offerings (STOs), but there are questions about whether investor demand is going to be any different.
Ahead of announcing an official strategy for leveraging blockchain technology more widely, the German government has opened a process for receiving recommendations around the technology from local companies and industry groups. Germany is Europe's largest economy and Berlin is home to numerous blockchain startups. The solicited recommendations could lead to official legislative action in the near future.
ICOs emerged quickly as a popular model for crypto startups to raise funds, exposure and customer interest. But the world of ICOs took a nasty turn in 2018, with many projects that used the model unable to deliver on their promises to investors or turning out to be downright phony.