New ICO Token Project Data Reveals $20 Billion in Funds Raised Collectively in 2017
ICOs Raised $20 Billion Collectively In 2017
ICOs have been pretty successful in 2018. A study, tilted Crypto Utopia, assessed the cryptocurrency industry over the past year and focused on ICO regulation.
The study indicated that ICOs raised $12 billion in 2018 thus far, and last year, they raised $7 billion. Blockchain ICO protocol EOS and Telegram, a messaging app, brought in the bulk of ICO funds in 2018, with $4.2 and $1.7 billion, respectively.
To date, there have been over 300 crypto funds launched to invest in crypto assets, and most of the funds are concentrated in a small majority of organizations. The research also indicates that ICOS are often exposed to fraud and scams, which have led to the theft of 15 percent of crypto assets by market capitalization. Further over 50 percent of ICOs failed to raise funds and have thus closed.
In 2017, $7 billion was invested in ICOs, which is four times greater than equity investment in cryptocurrency companies. Most ICOs launched to take advantage of the funding “goldrush” and this has raised quality and regulatory concerns about their tokens.
As for price performance, the top 200 liquid coins in the last 1.5 years saw a massive surge, from 10 to 1 million percent. The study’s author’s suggest that the performance indicates an exponential software-like growth for digital currencies. The study also indicated that venture and trading funds are:
“the most numerous and hold the most assets under management.”
Autonomous Research published another study last month that showed that funding for ICOs has slumped the most in the past 15 months. In august, ICOs raised only $326 million, the least since May 2017. In August, ICORating published a study indicating to the contrary, which is that the ICO market has doubled in the past year.
The takeaway – there is a lack of consistency concerning ICO fundraising performance.