Crypto Frontline

ICOs in 2017 – A Multi-Billion Industry

ICOs in 2017 – A Multi-Billion Industry

ICOs in 2017 – A Multi-Billion Industry
February 14
11:39 2018

The year 2017 had been quite a busy one in terms of ICOs. Some positive things happen, as you will see in the ICO statistics we will discuss shortly, and some bad things happened as well, too, culminating with the China ban of ICOs. However, even though there had been some negative consequences in the short-term, which materialized in a short drop in the price of cryptocurrencies, the year 2017 had been the best in terms of ICOs and record funding had been obtained.

More than $6 billion raised

The total amount, in US dollar terms, raised by startups using Initial Coin Offerings which basically are token sales and involve the selling of new digital coins, had been very good since the first quarter of 2017. According to Coindesk, nearly $800 million had been raised using ICOs.

As you can see from our chart, the situation continued to improve, especially in the last four months of the year, culminating with a record $1.6 billion in December. Compared to the year 2016, the situation had improved substantially. As ICO statistics show, in the year 2016, there were 30 ICOs and the total amount raised on a yearly basis had been approximately $97 million. In 2017, there had been 886 ICOs and more than $6 billion raised in total.

The trend continued in the beginning of 2018, with 212 ICOs until mid-February and $1.7 billion raised. The Telegram ICO is the biggest ICO thus far and it is worth to mention. Will be interesting to watch how much the positive trend will continue. The year 2018 is expected to be busier since not only China is in the spotlight regarding ICOs. Russia, South Korea, Hong Kong, Singapore and the US are all watching the ICOs with caution and rumors of securities regulation is now promoted across the media.

If ICOs will be disturbed by regulation that will be a hurting sing for all cryptocurrencies. As the ICO statistics show, there is a determination from investors to use their digital coins in order to offer funding for startups. Using the ICOs cryptocurrencies can have a purpose and the skepticism involving their utility could be reduced, if not vanished. It is absolutely necessary that cryptocurrencies, like fiat money, have a function and help the economy.