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ICO investment: A silver lining on the cloud over ICOs?

ICO investment

 

Back in 2017, it was the most popular fundraising mechanism. However, Initial Coin Offerings or ICOs are going through a rough patch right now.

Why?

Dwindling investor interest in ICO projects, unclear regulatory environment and bad press and actors made what was once a lucrative form of crowdsourcing, now a difficult task.

ICO numbers are in free-fall

In the United States, ICO numbers dropped by as much as 85%, according to InWara’s monthly Report-April. This trend is not unique to just the USA, the world over ICO numbers have taken a massive dip.

No. of ICOs by country

ICO investment

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In April 2018, as many as 534 Initial Coin Offerings were launched the world over. In comparison, only 81 ICOs were launched in April 2019. A massive 84% decrease in just a year puts into perspective the environment surrounding ICOs today.

Despite their tanking numbers, ICOs are successfully raising huge sums!

ICOs numbers are dwindling but during the month of April alone ICOs managed to raise a whopping $569 million. If ICOs are dead as some people claim them to be, hwhy and how are they raising such inordinate sums of money?

Funds raised by country

ICo investment

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The single largest contributor to token sales was Singapore raising over $200 million. The island nation alone accounted for as much as 40% of the funds raised this month in ICO token sales.

Even the US, where regulatory bodies were in overdrive, witnessed $92 million being raised in April 2019. While this amount is a far cry from the $400 million raised during the same time last year, it is still a sign that ICOs as a fundraising mechanism are far from dead.

In addition to Singapore, several other Asian countries have made significant strides in the ICO space. China, Japan, and South Korea managed to raise over $100 million between them.

The Asian ICO market has declined as well. Last year China, Japan and South Korea raised $219 million between them — a 52% decrease in the funds raised. But they outperformed the American ICO market, which declined by over 75%.

We’re seeing a decrease in the number of ICOs. True. But does that mean that the ones that survive aren’t raising capital?

 

If you're interested in reading about Security Token Offerings/Digital Securities, check out our highly acclaimed STO report: Security Token Offering Ecosystem.

Disclaimer: All the above data used in this article is sourced from InWara’s market intelligence platform .