ICObench Initial Coin Offering Market Analysis & Statistics

About two weeks ago, ICObench made public their findings regarding ICO market review for the month of March, along with some interesting information on the crypto industry. The report included information on different ICO platforms, stats by industry, overall market trends, and more.

After carefully going through the report, we came up with important insights, as presented in this article. Read on to learn about what ICOs hold so far, as well as the projections for this new way crowdfunding.

The U.S. Tops the List of ICO

As circumstances stand, the United States leads the pack with 415 ICO projects. This nearly doubles the figure for the countries in the second and third slots:

  • The United States—415 ICOs
  • Russia—238 ICOs
  • Singapore—187 ICOs
  • Switzerland—123 ICOs

While the U.S. leads the pack, smaller countries are coming up steadily as well. According to the figures mentioned above, Switzerland comes fourth in terms of its ICO projects. However, considering the total amount it has raised from ICOs, it acquires the second slot.

Switzerland is the second country to receive more than $1 billion in ICO contributions after the U.S. This follows the openness of the government toward the blockchain technology, which has seen Zug, Switzerland become a crypto valley. With the success already witnessed, it is possible that the country will continue witnessing more success with ICOs.

Surprisingly, smaller countries have a major impact on the ICO market. Estonia, for example, produces 77.1 ICOs in every one million citizens. Similarly, Singapore generates 31.9 ICOs in every one million citizens. This is in a big contrast to the USA, where the ratio is just slightly more than one ICO for every one million citizens. It’s a clear indication that the smaller nations are set to carve a niche for themselves in the blockchain world.

Ethereum is the most preferred ICO platform

Ethereum currently commands 81.14% market share as far as ICO platforms are concerned. It followed by Waves, which commands a paltry 3%. Considering its development community and growing reputation, it’s no surprise that the ethereum network dominates the market.

On the other hand, NEO has just hosted 14 ICOs, but leads the pack in terms of the funds raised per ICO project, with each of its ICOs raising more than $5 million on average. Another larger platform for ICO projects is the Stellar network, with projects that have created their own blockchain. These projects have managed slightly more than $3 million for each ICO.

The NEO network gains additional mileage based on the average score awarded to its ICOs. NEO-based ICOs enjoy the highest ratings in the market, off all the platforms. This follows the high cost of GAS that accompanies the launching of a NEO smart contract. This eliminates many of the less trustworthy projects that you can find on other platforms.

Is the ICO bubble popping?

While the number of ICOs may have hit an all-time high, the amount raised from the projects continues to hit rock bottom. Currently, the average market value for ICOs stands at $1.8 million—just a 10% of the high witnessed in November.

A close look at the March report reveals a continuing trend. While the number of ICOs increased on a weekly basis, the amount they generated dropped considerably. In the last week of March, the average ICO funding was simply at $348,400.

But what might have caused the continuing drop? A few factors come into play. The overall bearish condition of the crypto market had the largest impact on the amount that ICOs could generate. In addition, the presence of exit scams and unrealistic projects have taken toll on the community, as more investors become reluctant towards investing in ICO projects. They choose to wait until the coin is listed in popular exchange platforms.

Investing in ICOs Could be Lucrative

If you had invested in $1000 NEO at the time of its crowdsale (then Antshares), today your savings could have been above $1.5 million. That could be more than 160,000% return in just above seven months. Taking time to digest that, even the tenth most successful ICO, Golem, has generated a return on investment of more than 2000% in a period of one and a half years.

To verify this viewpoint, if you had invested in the top performing stock of S&P 500 in 2017,n you would generate just a mere 132% return.

With a dropping trend in ICO investments, it is difficult to predict whether there are greater opportunities ahead, now that many projects price their coins lower during the crowdsale. It’s also not easy to tell whether there is little interest in the projects, which leads to lesser gains.

What’s the Future of ICOs?

As the markets seem to gain momentum, it is interesting to see how things will turn out against or in favor of ICOs. An imminent bull run could spark a new wave of FOMO-based activities. However, it’s clearly evident that the 2017 opportunities were just short-lived.

Even though the average amount generated by ICOs has dropped considerably, the number of ICO projects continues to grow. That is an assurance that ICOs are here to stay, at least from a start-up funding point of view.

It is always advisable to do your research before you invest in the projects. And if you do, invest only what you can afford to lose, and HODL!

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