During the first half of 2018, ICOs have attracted almost double the number of funds that were raised throughout the whole of 2017.  In a new report, researches have highlighted that despite an increase in backing, over 1/3 of the projects closed successfully. The study states that the US remains the most popular destination for ICOs whilst Switzerland has firmly established itself as a European hub for industry regulation.

Capital that is raised via ICOs has topped an impressive $13,7 billion USD in the first five months of 2018 alone. This is twice the total for the whole of 2017 and the data is the result of a report that was authored by the Swiss Crypto Valley Association and Strategy& which is the consulting division of PwC. The aim of the study is to offer an accurate and comprehensive overview of ICO activity across the world, as well as to explore key changes in the space over the last 18 months.

Whilst this year has seen a bearish trend overtake the crypto markets, the numbers in the Global ICO report tells a different story. Head of Blockchain EMEA at PwC, Daniel Diemers stated that the report “highlights the continued growth and popularity of ICOs globally in 2018 with over 537 ICOs conducted in the first five months of this year, raising a combined total of $13.7 billion USD- more than all ICOs which took place before 2018 combined”.

He continued:

“After all the hype of 2017, this year has seen the ICO sector becoming more mature and established, with an improved focus on best business and legal practice, investor relations and fundraising. Hybrid models of combined Venture Capital and ICO financing are increasingly bringing together the best of what both have to offer so that the soundness of a business is validated while it realizes its market potential by receiving crowd support.”

The report also states that over 30% of all ICOs fail due to being delayed or losing momentum during the token sale process.

Following in the ICO shaped footsteps of the US and Switzerland is the UK which raised over $500 million for 48 ICOs in 2018. Then there are the smaller jurisdictions such as Gibraltar, Liechtenstein and Malta, with the latter recently enacting a new law that will encourage and regulate the ICO sector.


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