Initial Coin Offerings (ICOs) have raised close to 7 billion dollars for the first 5 months of 2018 alone and these figures are less the amounts raised by EOS which just finished its token sale where a total of 4.1 billion dollars was realised – this is according to ICOWatchlist Stats Department.
The Month of May alone saw ICOs raise more than 2 billion dollars in funding – a combination of 1.2 billion dollars from many ICOs and 800 million for EOS. According to Token Data, a Year to Date (YTD) total for ICOs rounds of to 11 billion dollars.
ICOs raised $550 million in April which marked the lowest performing month this year for ICO crowdsales. It can also be attributable to the fact that Ethereum which has become the default ICO currency slumped in value to a low of almost $360 in April.
Total ICO funds raised in March hovered around $1.5 billion – this figure is less amounts raised by EOS and Telegram. Crypto-investors have taken a keen interest in ICOs due to the short time frame of return (mostly as soon as the coins are listed on exchanges). Some ICO tokens have given as much as 700 times in Return on Investment (RoI) within as short a space as 12 months. On the flip side however, investors have lost funds to some ICO tokens whose performance did not match-up to expectations, and some ICOs have turned out to be outright scams.
Up until March 2018, over $23 billion had been raised by blockchain projects through ICO token sales. These figures are quite remarkable especially in the face of recent regulatory drawbacks in the United States and some other jurisdictions. This has meant that a lot of American investors have been missing out on the ICO market, but it has not dampened the interest of other deep-pocketed investors in placing their bets in selected blockchain projects. Research has shown that fewer ICOs are getting a chunk of these funds with as much as 40% of ICOs in 2018 have not reached their hard cap.
If the trend continues, we might see the ICO market capping the year at a figure of $30 billion dollars or more. It is however imperative that small named ICOs put in a lot of work to get a piece of the ICO pie so as not to begin to emulate the conventional venture capitalist (VC) market where mostly big businesses get all the funding.