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The ICO Boom in 2018

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July 9, 2018 | 

3681 Views | 

Joanna Newman | 

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The ICO market is booming.
Over the last 18 months, a very large number of new coins have emerged and the number of capital raised is constantly growing.
Originally, these cryptocurrencies were intended to disrupt fundraising rules while offering alternatives to Bitcoin. Nevertheless, with the recent decline of Bitcoin, many of these virtual currencies have been decreed as dead and this seems to support the idea of speculative bubble.
However, when you take a closer look, you realize that it is not so obvious.

The ICO phenomenon

First, it must be said that this trend in ICO is global, although some countries generate more than others and win the ICO Production Award.
On the podium, the United States is number 1, followed by the United Kingdom and Russia.
Thus the United States represents 16.05% of the ICO market.
Great Britain, 10.70%.
And Russia 7.69% followed closely by Switzerland with 7.02%.

Moreover, the sectors most represented are obviously those of finance, because of the cryptographic nature of the projects, but also those of the Blockchain technology.
Thus, finance represents 13% of the ICO market against 38% in the blockchains.

What trends for ICOs in 2018?

In addition, 2017 was a great year for ICOs.
Indeed, the whole world had its eyes turned to the cryptocurrency market, especially because of the spectacular rise of Bitcoin.
But 2018 has started very well.
Specifically, March 2018 was by far the best month for ICOs and the market raised $ 2.9 billion.
Among them, the Telegram ICO, collecting 1.8 billion dollars.
But also the Venezuelan Petro who managed to raise $ 5 billion in funds with his pre-sale on February 20, 2018.

ICOs do not have the expected success

Despite these very good figures, some people are worried about the lack of success of the projects themselves. And these fundraisers have not given the results expected by investors.
Just take for example the project Tezos who suffered many governance struggles between its members and did not achieve the hoped success.

In fact, during the year 2017, 913 projects have emerged, raising $ 5.6 billion. But 131 have not survived, or 14%. 347 (38%) remained without any published data. Only 435, or 48%, have been successful.

All this tends to worry investors and this negative perception of ICO affects all crypto currencies, as well as Blockchain technology.
This is the reason why regulations are becoming stricter and protecting investors more and more.

But despite these regulations, ICOs are struggling to keep their promises in 2018.
For example, deadlines are not respected and the implementation of projects takes much longer than expected. This is due in particular to the different stages of sales of ICOs.
On the other hand, it must be emphasized that this lengthening of the installation time is not necessarily a bad thing. Indeed, according to some studies, prolonged ICOs may be more successful.

Private and public ICOs

One of the latest trends in 2018 is the launch of private ICOs, before opening them to the public.
Thus, to use the example of Telegram, the private ICO was so successful that the public ICO was canceled.
As a result, some reports indicate that 84% of this year's fundraising comes from private ICOs and pre-sales.

Towards an evolution of ICO

We must not forget that the world of ICO is evolving.
The way offers are made and the tokens themselves change.
Today we are talking more and more about STOs: the offer of security tokens, or DAICO, which offer interactive pieces, or models of continuous chips.

Thus, the STOs offer tokens that are based on real assets, based on the profits of the company.
It is therefore closer to more traditional securities that meet the requirements of the US Securities and Exchange Commission (SEC).
For many, these STOs should dominate the market in the near future. Because these tokens are protected from scammers and speculations electronically.

DAICOs are hybrid solutions between ICO and DAO.
They help raise funds while offering investors management levers. This novelty was suggested by Vitalik Buterin, the founder of Ethereum.

Then there are the interactive offers of coins.
It is a protocol, also developed by Vitalik Buterin and Jason Teutsch, which guarantees the certainty of evaluation and participation at the same time.

Finally, continuous chip models are tokens that do not have pre-sales. They are struck in different ways and then distributed for services rendered on the network.

ICO scams

It must be recognized that among the ICOs there are often scams.
Against this, ICObazaar has developed a scoring system for ICOs.
In their system, only 7% of projects are rated above 4.5 out of 5.
58% of other projects score less than 4 out of 5.
This is due to lack of information about the team and the company, or a poor description of the product in the white paper.

"This usually happens when the team is quick to appear on the ICO trackers, but does not pay enough attention to their documentation, social media or the size and quality of the community supporting the ICO trackers. project. "Explains ICObazaar.
But in reality, despite everything, high quality projects have increased in 2018.

What future for ICOs?

In this context what is the future of ICOs?
In fact, it is clear that ICOs, such as cryptocurrencies and blockchains, are still in their infancy.
Things will certainly evolve.
And the changes will focus primarily on security, reliability and transparency.
However, these changes will take place only within the framework of a stricter regulation, protecting the investors.
It is undeniable that this system, again new fundraising, is very promising.
Let's bet that when it is fully honed, this ICO system will have even more to offer and will experience very significant growth.

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