Cryptocurrency Startups in the UK Are Failing
Cryptocurrency startups, which were launched in 2018 in the UK, in most cases crash. Experts explain this by the fall of the digital assets market.
In the last months of last year, the cryptocurrency fever has captured many business areas. Market became interesting because of the fact that ICO-projects attracted millions of US dollars, and the cost of individual cryptocurrency assets reached record levels. At the same time, the drop in the price of digital currencies this year showed that everything isn't as good as it seems at first glance. The decrease in the cost of cryptocurrencies was also reflected in the mining companies.
The value of shares of cryptocurrency companies will decrease in 2018
In the midst of cryptocurrency fever, some companies decided to change their corporate direction towards new developments. Apparently, the attractiveness of the developing market caused the opinion that even a small start-up, in a short period of time, could become a major player in the world space.
Some companies even decided to change their names, with the addition of "blockchain". Their management believed that changing the name would positively affect the growth of the value of shares. Including, such companies in the UK became Blockchain Worldwide and Online Blockchain.
According to information published in the Financial Times (FT), the two companies appeared at the end of last year and at the beginning of this, respectively. Initially, Blockchain Worldwide positioned itself as an online information technology incubator. After the leadership decided to work in the direction of the crypto currency, Blockchain Worldwide's shares increased from $0.17 to approximately $1.95.
Nevertheless, a steady decline in the value of digital assets, led to the fact that the shares of companies fell by more than 75%. Analysts note that the cryptocurrency direction of work, still doesn't bring any benefits.