A recently published report by the Crypto Valley Association & PwC Strategy shows that Initial Coin Offerings (ICOs) are a popular method of funding. Between January and May 2018, a whooping sum of $13.7 billion has been raised by 537 ICOs alone.
Compared to the present success, 3470 ICOs raised only $21 billion since 2013. During the period of 2013 to 2018, only 30% of the ICOs were successful, with 70% losing momentum.
According to the publication, 2018 was a successful year for ICOs. The sector is more mature and established now. Additionally, currently concentrates on best legal and business practice for fundraising and investor relations.
“This report shows that Switzerland is still a leading hub for ICO and blockchain activity,” said Oliver Bussmann, President of the Crypto Valley Association.
Prediction for 2018
During 2018, there was a decline in the major cryptocurrencies like Bitcoin, Ethereum and Litecoin. However, ICOs remained in demand. Presently, investors are more focused on the blockchain and what it can do for various industries. Although, ICOs saw a drop in April, it is still on the rise.
According to the ICOdrops website, the total raised in 2018 rose to at least $416 million during the month of June. In fact, token sales have also increased during 2018. Significant token sales were evident in June from notable exchanges like DAV Network, GoNetwork, OneLedger, Alchemint, HybridBlock and QuarkChain.
Of the 20 ICOs that were completed in June, at least 70 percent achieved 95 of their funding goals. Additionally, 22 token sales in August had hard caps of $519 million.
Contrary to this success, many token sales are also on hold. Additionally, some sales are pending approval, and those that remain are conducting their pre-sales before the launch.
While the United States and Switzerland experienced significant ICO activity, the United Kingdom and Hong Kong is not far behind. Additionally, smaller states like Liechtenstein, Gibraltar and Malta has also following in he footsteps of Switzerland in 2018. They aim to establish themselves as ICO friendly hubs.
Similarly, the regulatory bodies want to ensure improved data privacy and security for ICOs making it a safer choice for investors.
“After all the hype of 2017, this year has seen the ICO sector becoming more mature and established, with an improved focus on best business and legal practice, investor relations and fundraising, ” said Daniel Diemers, Fintech Leader Switzerland, Head of Blockchain EMEA at PwC Strategy.
He also believes that with Venture Capital and ICO financing, the market is changing for investors. This also highlights the potential of crowd support in the market.
Therefore, ICOs are still popular and it will take time to diminish its use in the investment sector.
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