New Study Shows ICO Market To Have Doubled Since Last Year
While there has been a general consensus in the crypto ecosystem that ICOs have been losing steam in 2018, a study published by ICO rating reveals that the ICO market has doubled in a year.
ICORating is the global market leader for independent, non-affiliated analytical research on ICO projects, conducting detailed evaluations and assigning them investment ratings. Their main aim is to create transparency in the market and to provide investors with the tools they need to make informed, evidence-based decisions in order to bridge capital and transparent ICOs.
ICOs in 2018 have already raised over $11 billion in investments, a figure which is ten times larger than the sum of investments from ICOs in Q1-2 2017. In Q2 2018, 827 projects raised over $8 billion in funding, compared to $3.3 billion in Q1 2018, representing a 151 percent increase overall.
Tough Times For Most ICOs
50% of the ICO projects announced in Q2 of 2018 were not able to attract more than 100,000 USD. Comparing the current state of affairs with what was happening a year ago, the percentage of ICOs which could not raise $100,000, has increased from 13% in Q1-Q2 2017 to over 50% in Q1-Q2 2018, which tells us that the overall quality of projects has significantly worsened. That being said, generally, the quality has improved compared to the end of 2017.
Only 7% of all announced ICOs were able to be listed on exchanges. In Q2, the average time for listing increased by 6 days. The number of projects listed in the shortest time possible after ICO completion decreased by 22%.
Additionally, 55% of all ICOs failed to complete their crowdfunding (5% more than in Q1). On average, in Q2, projects raised either $1-5 million (17%) or $10-25 million (12%).
Many ICOs Raise Funding In The Idea Stage
The study also found that 57% of the total ICOs aimed to raise funds at the idea stage. But these projects raised the lowest amount of funding on average. The report says: “The highest percentage of unsuccessful ICOs in terms of product readiness arose from projects at the idea stage. 58% of such projects failed to raise more than half a million dollars.”
Instead, a majority of investors were interested in participating in projects that had an MVP ready. These ICOs raised as much as $34.5 million on average in crowdfunding.
Popular Industries And Countries For ICOs
The most popular industries according to the amount invested in Q2 was finance and blockchain. EOS, a blockchain software architecture, had raised $4 billion over the past year, while PumPay, a finance sector project, as mentioned above, was one of the most successful ICOs in Q2.
Europe has become a leader, launching 46 percent of all projects, while North America is leading in investment, collecting 64.67 percent of attracted funding. The report adds: “Asia-based projects showed an increase in funds raised (+20%), but a decrease in the number of projects launched (–40%).”