Though numerous initial coin offerings (ICOs) existed before the Bitcoin price took off in 2017, an array of blockchain startups took full advantage of the bullish markets that year to launch their ICOs. While some of these crypto-based fundraisers were genuine, a good percentage of them were outright scams which have tainted the image of ICOs. Contrary to the current sentiment, a report by Irish Tech News on May 15, 2019, has revealed that ICOs are not entirely dead after all.
ICOs Still Have Life
As stated in the Irish Tech News report, ICO numbers have been dwindling since Q2 2018, and it’s still unclear whether the now controversial fundraising method will regain its past glory, as the number of ICOs has crashed by 72 percent year-over-year.
Interestingly, despite their not so impressive numbers, almost twice as many ICO projects have raised funds in 2019, though many of them hardly reached their soft cap targets.
Reportedly, during March 2019, the percentage of ICOs that raised funds grew by 71 percent to as much as 60 percent when compared to the meager 35 percent that raised funds in March 2018.
In essence, it is safe to say that while the number of new ICOs has dropped significantly, the few that are brave enough to tread this path are still managing to raise a decent amount of resources.
If data released by InWara, a platform that claims to be focused on analyzing ICO projects, is anything to go by, April 2019 was a hugely successful month for ICOs, as the projects raised a combined total of over a billion dollars.
Specifically, InWara reportedly analyzed ICO projects from several jurisdictions, including the United States, Europe, Asia, and North America and found out that about 17 percent of ICOs in the U.S. succeeded in raising funds, China, South Korea and Singapore managed 9 percent, 5 percent and 40 percent respectively, while only six percent of ICOs in Europe and North America made money.
Interestingly, despite the blanket ban on Bitcoin and altcoins by Chinese regulators, researchers have revealed that Asian markets such as Singapore, Japan, China, and South Korea still outperformed other regions, as they raised a whopping $320 million between them.
A strong indication that Chinese and South Korean residents have found a way to participate in ICO schemes despite the existing embargo.
While ICOs are busy trying to find a way to become relevant once again, it’s worth noting that security token offerings (STOs) have started gaining traction in the cryptospace, with several firms already jumping on the STOs bandwagon.