Ernst and Young have spoken on the current state of cryptocurrency market through their latest report, and the results are very grim. Certainly not good for the dwindling and swaying cryptocurrency market.
The report claims that investors who purchased coin portfolios in the 2017 class of initial coin offerings (ICOs) are likely to have lost forty-four percent of their investment value oil 1st of January, 2018.
The situation is grim overall since only as low as twenty-nine percent of projects have been able to gain traction up to fifteen percent.
On the other hand, the report also revealed that projects are also losing their offering in the market after deciding to accept fiat currencies to stabilize their projects.
The report deems it “abandoning their ICO investors by de-emphasizing their tokens,” wherein some cases projects have completely dropped their tokens in favor of fiat.
E&Y further revealed that currencies are forced to opt stability over investor portfolio returns for their existence. This, however, in turn, reduces the level of trust on the currency.
It’s not all bad though; the report also revealed that about ten blockchains backed ICOs have managed to stay afloat in the gain zone which is not enough to counter the Ethereum competition.
Experts are now comparing the data with previous reports that held developers breaking their ETH security for products responsible for weakening the prices.
On the other hand, Paul Brody, an expert at EY also believes in another prevailing theory that compares the current Crypto bubble with the .com bubble