It seems that the Initial Coin Offering (ICO) market is bigger than many would have supposed. Although it is smaller than what it was in 2018, the numbers show that it is larger than at the beginning of 2017. This information was released by CoinSchedule on February 13.
Data from CoinSchedule shows that in January, ICOs were able to raise $291 million in funds from investors. This number is the lowest registered since May 2017 when ICOs gathered $289 million. Compared to April 2017, this represents a 72% increase, when at that moment ICOs gathered $81.8 million.
The site shows that the United States was the favorite place where to launch an ICO. However, due to an increased presence of regulators in the market, such as the U.S. Securities and Exchange Commission (SEC), ICOs have been launching their tokens from other countries such as Switzerland. The European country is one of the most open towards virtual currencies and blockchain technology. Additionally, it has created a more clear regulatory framework than other jurisdictions around the world.
In another report released by ICObench, Initial Coin Offerings launched during the last quarter of 2018 raised 25 percent less than the third quarter of the same year. This showed that at the end of 2018 ICOs were already being affected by this bear market.
The fact that companies continue to conduct ICOs could be viewed as surprising, wrote Bloomberg in a recent article. There are several coins that dropped more than 90% since their all-time high in January 2018.
Jack Platts, a spokesman at Web3 Foundation, explained that ICOs and their model are not going away.
About it, Platts commented:
“The ICO model is not going away. The ability to raise money from anyone globally in a pseudo-anonymous way is still compelling to a lot of projects, and some version of it will be used long into the future.”
The best moment for ICOs was during the bull run in 2017 when the projects started to enter the market and release new tokens. As prices of digital assets were growing, they were also able to get more funds. The best month for ICOs was June 2018 when the EOS ICO ended with $4.1 billion raised in 1 entire year. June ended with $5.8 billion gathered by projects in the crypto space. The second best month was March 2018. At that time, ICOs gathered $4.54 billion in funds.