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ICO news: ICOs are akin to a phoenix rising from the ashes

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Is the ICO really dead? With ICO numbers dwindling since the massive highs of Q2 2018, it’s fair to assume that the trend left a lot to be desired. The bad actors who made a quick buck and scammed the poor retail investor became the poster for the ICO.

Bad press. Low numbers. Nearly no funding. Frightened investors. Definitely a terrible backdrop.

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To parse through the data, the number of ICOs has fallen a colossal 72% YOY. Clearly, the Initial Coin Offering method of fundraising has seen the end of its hey-days and we’re at the bottom of the barrel.

Right?

Well, maybe not.

Despite their dwindling numbers, almost twice as many ICOs raised funds last month than in the same period last year.

Even in their hey-day, you may be surprised to note that not all ICOs managed to raise funds.

Often a majority of ICOs don’t raise any funds at all while some ICOs raise in-between their hard and soft cap and have to walk a middle line in terms of expansion.

A quick look at the numbers will tell you that statistically, ICOs didn’t always manage to raise their soft-cap amount let alone their hard-cap.

Why is this relevant now? What has changed?

The scales have, surprisingly, tipped in the other direction. In March 2019, the percentage of ICOs that raised some funds (albeit not the entire amount they were seeking) has grown by over 70% to as much as 60%, according to InWara’s Monthly Report-April 2019.

Percentage of ICO that raised funds

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Interestingly just a year ago, only 35% of ICOs managed to any funds at all.

So we are left with a hard choice here. ICO numbers are dwindling. But at the same time, ICOs are successfully raising decent sums and a greater percentage of ICOs are managing to do it.

These appear to be tell-tale signs of maturity.

There is now a bar which requires significant effort to clear. If you do, you raise capital. Seem similar to traditional sources? 

For example, during April of 2019 alone — ICOs across the globe managed to raise a whopping $569 million

Now how does the dead man begin to walk? Does more than half a billion dollars raised in just a month mean a return?

Funds raised by Country — April 2019

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Admittedly most of these funds were raised in the Asian market with relatively more friendly ICO regulations, barring China. Asian markets such as Singapore, Japan, China, and South Korea raised over $300 million between them which is significantly higher than their European or American counterparts.

It appears that ICOs are more successful at raising funds than they were a year ago but overall the number of ICOs have been declining.

Does this mean we are heading to market maturity?

 

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.