Since the end of the last year, Initial Coin Offerings have been expanding and raising an important amount of funds. And indeed, during the second quarter of the current year, ICO investment grew 151%.
Initial Coin Offerings Continue Growing
The information has been released by ICORating and shows that ICOs raised $8.3 billion dollars. This number is even bigger if we take into account two more months, since the beginning of the year, reaching an astonishing $11.3 billion dollars. This is 10 times more than the numbers registered during the same period in 2017.
One of the more interesting ICOs of the year was EOS, which ended its crowdfunding campaign after a full year. The company was able to raise $4 billion dollars. EOS was able to become the 5th most important virtual currency in the market surpassing Litecoin (LTC) a historical player.
But there is still an important issue to solve, more than half of the projects cannot achieve their goals. According to experts, the projects that couldn’t raise all the funds they planned did not offer good quality projects. Additionally, they mentioned that this situation is not related to the token type that the ICO is offering.
Of all the ICOs, just a very small group reached the $50 million dollars target. But there is another group that was only able to gather something near $100 thousand dollars.
Most of the projects that were presenting an idea to be developed in the future received the least amount of funds. This is why 58% of those projects raised less than $50 million dollars. The most successful ICOs were those that already had an ongoing project or a product or service in the market. This is why these ICOs raised over $34.5 million dollars on average.
These are the most important categories for ICOs: financial, gaming & VR, investment, blockchain and social media. Compared to the first quarter the number of gaming projects doubled in number.
The number of Initial Coin Offering continues to grow despite the bear market in which we are now operating. If the virtual currency market recovers from this negative moment we could experience an increase in the number of companies launching their own ICOs to gather funds.