First Few Weeks Of 2019 See Initial Coin Offerings Raise $90 Million Total (Chelle Coin Is $80 Million)
If you thought that 2019 would be a better year for Initial Coin Offerings (ICOs), there is a real chance that you are in for some disappointment. According to information that was published by Icobench, which tracks this kind of investment, ICOs have raised only $90 million USD in the first two weeks of 2019.
What is even worse is that $80.2 million USD are only from a single successful ICO, Chelle Coin. This means that most ICOs are suffering a lot to survive in the new reality of 2019 while only one was able to get most of the money so far.
According to the information released by Icobench, 47 ICOs were launched during the first week of the year and there are 424 ongoing projects at the time. Despite there being so many ICOs, most of them will fail. Only $6 million USD was collected in the first week of the year. This was the weakest week for ICOs since 2017.
The second week was considerably better but mostly because of Chelle Coin, an ICO that was described as being backed by the North American True Estate and was able to get $80.2 million USD. Excluding the company, only $3 million was raised.
This shows just how unsuccessful ICOs are at the moment. Despite many predictions that they are the future, most investors are burned from losing a lot of money during 2018 and they simply do not believe so much in ICOs anymore, which can become an endemic problem for the industry if trust is not regained.
Declined Started In The Second Half Of 2018
The slow start is not very surprising, though, as ICOs are on a movement downwards since the second half of 2018. The final six months of the year saw a steep decline in how people invested. ICO investment fell by 65%, going from an average of $1.45 billion USD to around $500 million USD. Almost all months were behind the monthly average of the year, too.
Individual ICOs also started to fall. They could get at least $24.4 million USD each in 2017 but fell to 11 million USD each in 2018. When you consider that the beginning of the year was considerably better for ICOs, it is not hard to see how catastrophic the end of the year actually was.
Singapore Was The Leading Country For ICOs In 2018
Curiously, the report shows that Singapore was the nation that raised more money with ICOs: $1.54 billion USD from 275 offerings that happened in the country. The United States had more ICOs, 288, but with less money for them, $1.22 billion USD during the year.
The UK ranked third in 2018 with 222 ICOs and only $945 million USD raised. Countries like India and China banned ICOs, so even being large, they did not raise money with ICOs. This made some interesting countries rank in fourth and fifth.
In fourth were Cayman Islands and, in fifth, Switzerland. The first one had $917 million USD from 56 offerings and the other one, $845 million USD from 136 offerings.