Bitcoin, Crypto currency, Blockchain

ICO study: whales displace small fish

22f545e329bc29ab94ffd33e3e3323df - ICO study: whales displace small fish


More and more institutional investors participate in ICOs. This has resulted in an interim report of the ICO review page . The number of private investors increases, however.

The ICO-the market analysis comes to the result that in the second quarter (Q2) of this year are about gone from 8.36 billion U.S. dollars in Initial Coin Offerings. This represents an increase of 151 percent compared to the first quarter (Q1) 2018, in which ICOs around to 3.33 billion US dollars were able to collect. As the main cause for the increase in the Report this is called the one-year ICO of EOS, the one that ended on the first of June, and about 4.2 billion dollars grossed.

In the year of comparison has increased tenfold the volume of investment. So a total investment recorded in the current year the volume of 11.690.981.663 US Dollar. Without the ICO of EOS, the increase is still the 6.4-fold in the first two quarters of the previous year. About half of the Q2 scheduled ICOs was not able to collect more than 100,000 dollars. Last year, this number is for Q1 and Q2 stood at 13 percent.

More than half of the ICOs failed

The Report comes to the conclusion that some 55 per cent of the projects have not achieved in the second quarter of 2018 your investment target — 5 per cent more than in Q1. 17 percent of the ICOs were able to collect between one and five million US dollars. Twelve percent of the projects managed to achieve between ten and 25 million dollars. The number of successful ICOs has doubled in may compared to January of the year in the following month, however, dramatically decreased. ICOrating defines a ICOs as “successful”, if the SoftCap is reached, or more than 500,000 in U.S. could dollars be collected. Best cut in Q2, the payment service provider PumaPay. With 117 million dollars PumaPay the runner-up, flash Moni (72 million U.S. dollars), far behind.

Token on Token

Among the various types of tokens dominated tokens in the second quarter of the Service. In 42.5 percent in Q2 completed ICOs went to the issue of Service Token. A Service Token is used as the project’s internal currency that can be exchanged (provided that it is based on the Ethereum block Chain) to ETH, without damaging the product. With 35,37 percent the second most common were Utility Token. Utility tokens to fulfill a task within a Protocol, their sale is essential for the functionality of a project. Often the tokens of EOS and VeChain appear in this context.

It projects with a Utility Token that could collect in the second quarter, by far the most funds: a Total of 22 million US dollars. At least investment funds were invested in projects with Vote Token (the Token, the voting rights of pledge), followed by Security Token (tokens, for example, are secured by the pledge of the shares of the company). Although only 1.36 per cent of the projects have offered a “pure” crypto-currency, they were able to prove, with around 7.5 million US dollars in place of two of the most successful Token-types of the Q2.

Financial services dominate in the industry

Finance, Gaming, infrastructure: these are the three sectors for the second quarter of 2018, the majority of ICOs were held. Projects with focus were able to unite on financial services in Q2 in addition to projects in the field of Blockchain-Infrakstrukur most of the investors ‘ funds.

The most profitable: purses and Wallets

The most profit, however, investors with projects that were about (crypto-)exchanges and Wallets.Token from this sector achieved an average return of rich, 914 per cent. In contrast, in the case of projects with a focus on Investment and banking and payment services projects were, on average, accounted for losses of nearly 50 percent.


The Report makes three important Trends for the ICO market in Q2:

  • The share of institutional investors has increased greatly, the number of private investors drops. This increases the demands on ICOs, whose (Non-)success increasingly depends on the cooperation with investment funds.
  • Crypto exchanges to take the strongly growing influence on the market.
  • There was a shift from public to private Token Sales

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