Cofound.it, a crowdsourced venture capital firm has decided to close the company as they believe that the ICO market is dead.
Their idea was to create an alternative VC ecosystem based on crowdfunding, democratization, and transparency. But according to their recent blog post, they no longer believe that this would happen as development and transformation in the ecosystem are going exactly in the opposite direction. The company has applied a statement that they do not want to participate in an ICO ecosystem that eventually harms its clients.
The company will wind itself down and distribute all its assets to its token holders.
“Instead of waiting for the market to turn around, we have decided to opt for creative destruction, wind Cofound.it down and distribute the assets to the token holders,” read the blog post.
Cofound.it was started a couple of years ago with a strong belief that the global economy, entitled by an open digital economy, to be available to all entrepreneurs.
But in February this year, they realized that crowdfunding is slowly dying.
“In February it was evident that we were correct in our predictions. The community-driven ICO concept of crowdfunding was dead,” was stated in the blog post.
Nearly half of ICOs failed to raise funds in the past two years
As BC Focus reported earlier, nearly half, to be specific 46% of ICOs failed to raise funds in 2017 and 2018.
In a research published by Greyspark based on data from ICOData.io and ICO-Check.com through August 2018, it was found that 893 token sales attracted zero funds while only 793 token sales could make more than a million dollar.
If this is the end of Cofound.it, there might be a closing spree of other venture capital firms as well, based on the research data.
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