Cryptocurrency investors are continuing to get hammered with unsettling news. Bitcoin is currently trading at just $3,449.32, down about 80 percent from its high last year, according to Forbes. As the coin continues its downward spiral, crypto whale Mike Novogratz told Bloomberg that the initial coin offering market is “dead.”

“The ICO market is pretty much dead right now,” said Novogratz during the interview. “There was a lot of fraud, and there was a lot of hype, and people lost money.”

One of the main reasons behind the fall of the ICO is an increase in regulations from groups like the Securities and Exchange Commission (SEC). Coin Desk reports that the organization has been categorizing ICOs as just another form of securities, leaving only Bitcoin and Ethereum classified as commodities. The SEC is still fearful that without adequate protections, investors are susceptible to being swindled.

“Companies and individuals are increasingly considering initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities,” wrote the SEC earlier this year. “While these digital assets and the technology behind them may present a new and efficient means for carrying out financial transactions, they also bring increased risk of fraud and manipulation because the markets for these assets are less regulated than traditional capital markets.”