ICO Proceeds Top $1B YTDFebruary 28, 2018
Year-to-date, startups have raised over $1 billion via ICOs, which is way above the figure recorded in the same period of 2017.
Since the start of 2018, startups have managed to raise over $1 billion through initial coin offerings (ICOs), according to data from CoinSchedule. If this pace keeps up, we could see another record year for ICOs.
In 2017, startups were able to raise $5.6 billion, December being the record month with a tally of over $1 billion. In the first two months of the last year, total ICO proceeds amounted to less than $50 million. Given the current pace, chances are that 2018 will break the previous record.
It should be noted that the latest figure excludes Telegram, which has already managed to raise over $850 million in its pre-ICO sale. The message service provider hopes to rake in a total of $2 billion in exchange for its TON tokens. However, Telegram might achieve more than that since founder Pavel Durov is reportedly conducting another pre-ICO sale round, but one time in secret.
In the first two months of this year, more than 45 startups conducted their ICO events and raised a combined $1.16 billion as of the time of writing. A third of these companies operate in the finance, trading and investing, and communications sectors. More than half of the funds were collected via the top 10 ICOs, off-grid mining services provider Envion leading the charge with $100 million. Neuromation and Crypterium come next with $71.7 million and $51.7 million, respectively. Neuromation wants to use blockchain for artificial intelligence model development, while Crypterium offers the so-called crypto-banking solutions.
Even though ICOs might smash the record this year in terms of collected funds, it doesn’t mean all projects will succeed. In fact, a look at the projects launched last year shows that almost 50% of them have already failed.
One of the key challenges in 2018 relates to ICO regulation in various countries. For example, the US Securities and Exchange Commission has already figured out how to discourage bad actors in the ICO market, and it might come up with tighter rules.
Source: Read Full Article