The Pantera ICO fund, which was largely funded by Mike Novogratz’s cryptocurrency bank Galaxy Digital, suffers large losses due to the bet on little-known altcoins and tokens.

According to the financial report for the third quarter of 2019, Galaxy Digital invested $ 17.4 million in Pantera ICO, but at the moment, the real value of investments is estimated at less than $ 2.9 million.

The fund has relied on various unknown ICO coins, but the so-called “altcoin season”, which many investors have been counting on in recent months, has not come.

At the same time, Galaxy Digital’s early investments in bitcoin are now valued at $ 106.5 million, increasing the cost primarily due to the rising price of the leading cryptocurrency, the report emphasizes.

Earlier, The Block analyst Larry Chermak found that 89% of ICO projects are unprofitable.

The popularity of this form of raising capital has fallen considerably compared to last year. In the first quarter, ICO projects raised just $ 118 million – 58 times less than in 2018.

Cases of overt fraud also contribute to the decline in investors’ interest in the industry, starting with relatively small projects like REcoin ($ 2.8 million) or Eastern Metal Securities ($ 11 million), ending with a OneCoin $ 2.9 billion scam.

In August Galaxy Digital increased its investment in the DeFi cryptocurrency lending platform. According to the report, the return on investment was about 80%.