HomeAltcoin NewsFailed ICO Does Not Mean the End for Blockchain Startup Civil

Failed ICO Does Not Mean the End for Blockchain Startup Civil


Raising money through an initial coin offering can be a lucrative venture. Most companies succeed in raising millions without too many issues. In the case of Civil Media, things have turned out a bit differently. Their ICO failed to raise enough capital early on and all investors will be refunded.

Civil Down But Not Out

The business model of Civil is a rather interesting one. This company wants to apply blockchain technology to the journalism industry. Addressing some of the industry’s inefficiencies and problems can result in enhanced transparency for all parties involved. Such a major undertaking can attract a lot of investors, although that is not how this ICO turned out. Instead, the uptake on this project is remarkably low.

Initially, Civil aimed to raise at least $8m. Its initial coin offering hard cap is set at $24m. After launching the sale, it quickly became apparent that few people showed any interest in the concept. Despite receiving $1.1m from ConsenSys, other investors could not keep the token sale going. As such, all investors will receive their money back and the token sale is no longer being pursued.

This is an unfortunate development for the company. Despite the setback, the team will continue with this blockchain venture regardless. A new token sale is already in the works behind the scenes. No specific details have been provided as yet, though information will become available in the coming weeks. Existing backers can either ask for a refund or participate in the new sale when it launches.

The ICO Industry Struggles for Funding

The ICO Industry Struggles for Funding

A few interesting trends have become apparent throughout 2018. Falling cryptocurrency prices seem to affect overall ICO funding. Albeit a rebound seemed to form in May and June, monthly figures have dropped off significantly ever since. September created a monthly low for 2018, which directly impacted the Civil ICO as well.

Another trend comes in the form of projects not raising a lot of money. According to ICOData, numerous active projects have raised $1 or less at this time. While that is not entirely abnormal, it seems October may not be a prominent month for ICO funding either. If this downtrend continues, a lot of companies may rethink their strategy to raise additional funding altogether.

A decline in ICO funding is not entirely surprising. A lot of projects raised millions of dollars over the years. Until some of the early coin offerings show a working product, investors will remain wary of this industry. Combined with a bearish pressure affecting all currencies and tokens, the markets do not overly attractive right now. That situation can change around, according to Mike Novogratz. Even so, the expert claims it will not happen prior to 2019.

Do you think Civil can rebound from this setback? Let us know in the comments below.

Images courtesy of Shutterstock


JP Buntinx
JP Buntinx
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

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