The initial coin offering industry is still going strong in 2018. Despite falling cryptocurrency prices, investors are quite keen on diversifying their portfolio in an effort to recover some losses over time. Below are a few interesting key takeaways from the ICO industry at this stage, ranked by order of overall importance.
#4 The Three-Stage Model
Unlike how initial coin offerings were organized in the past, it seems project owners are looking to raise funds through different stages. This includes conducting a private phase for select investors, a pre-sale – which is rather common – and a public phase, which is the actual crowdsale. Although it remains to be seen how many projects will explore the three-pronged approach. A private sale usually hurts the transparency of ICOs, which is something projects may want to avoid.
#3 More Money is Flowing in
Despite the tough time the cryptocurrency industry is facing as of right now, there is a growing interest in the ICO industry. More money has poured in compared to previous years, which further shows there is no lack of innovative projects utilizing blockchain technology. Even so, one has to keep in mind a large number of these projects can and probably will fail in the long run.
Throughout the year 2018, the average amount of money raised by ICOs has increased. It now seems the industry average sits close to the $5m mark, although that may still increase to $10m depending on what happens in the final months of 2018. This is a positive sign for the cryptocurrency industry as a whole, even though it also raises a lot of questions as to why the ICO industry continues to attract so many investors.
#2 Raising Over $100m is Very Common
Compared to just two years ago, more iCOs are raising higher amounts of funding. A rather intriguing trend in this regard is how an average of $100m per ICO is not all that uncommon. Some significant examples in this regard include Filecoin, Tezos, Bancor, Bankera, EOS, and so forth. It is evident this makes the concept of raising $100m through an ICO a lot more common than people assumed possible.
#1 The Number of Blanks Increases
Rather interesting statistics are provided by Greyspark Partners. Their Research seems to indicate a growing number of initial coin offerings fail to raise a single dollar. That is rather surprising in this day and age, as investors appear to be more eager than ever to obtain ICO tokens.
This research sends a clear message to companies pursuing an initial coin offering model. There is a very good chance no funds will be raised whatsoever, which can be quite problematic for companies not having any other option of securing funding. This may also be an indication investors are slowly smartening up in terms of ICOs, rather than investing willy-nilly.