Most cryptocurrency offerings trading below listing price -report

NEW YORK, Oct 19 (Reuters) – Almost a third of all cryptocurrencies that were financed through online fundraisers last year have lost “substantially all value,” while the vast majority are trading below their listing price, according to an Ernst & Young report published on Friday.

The professional services firm analyzed more than 141 projects that raised money in 2017 through initial coin offerings (ICOs), in which new virtual currencies are issued to buyers. It found that 86 percent of coins have fallen below their initial price on online exchanges.

Companies typically raise money through ICOs to build new technology platforms or to fund businesses that use cryptocurrencies and blockchain, the software that underpins them.

EY analyzed 86 projects that raised in 2017 and found 71 percent still have no working product or offering in the market. The percentage is significantly higher than what could be expected with traditional venture-backed software startups, EY said.

“This…