What was the total amount raised through ICOs in 2018?
In 2018, what was the total amount raised through ICOs?
The world ofcryptocurrencieshas been buzzing with excitement over the past few years, and ICOs have been at the forefront of this revolution. ICOs, or Initial Coin Offerings, have been the preferred fundraising method for many blockchain startups, as they allow companies to raise capital by issuing their own cryptocurrency tokens. But how much money was actually raised through ICOs in 2018?
1. The ICO Boom of 2017
Before we delve into the numbers for 2018, it's worth taking a quick look back at the ICO boom of 2017. This was the year that saw the rise of ICOs as a legitimate fundraising method for blockchain startups, and it was a year that saw huge amounts of money being raised through ICOs. In 2017, the total amount raised through ICOs was a staggering $6.2 billion.
2. The Decline of ICOs in 2018
Unfortunately, the ICO boom of 2017 did not continue into 2018. Instead, the ICO market saw a decline in activity, with fewer projects launching ICOs and fewer investors participating in them. The reasons for this decline are varied, but include regulatory uncertainty, scams and frauds, and a general cooling-off of the cryptocurrency market.
So, how much money was actually raised through ICOs in 2018? According to data from ICOBench, a popular ICO rating platform, the total amount raised through ICOs in 2018 was $7.8 billion. While this is still a significant amount of money, it represents a decrease of 58% from the previous year.
3. The Future of ICOs
So, what does the future hold for ICOs? While it's clear that the ICO market has cooled off in the past year, there are still plenty of blockchain startups that are looking to raise capital through ICOs. However, it's likely that we'll see a shift in the types of projects that are successful in raising money through ICOs.
Investment Tips and Factors to Consider
For those looking to invest in cryptocurrencies, there are a few key factors to consider. Firstly, it's important to do your due diligence and research any project before investing in its ICO. This means reading the whitepaper, looking at the team behind the project, and checking for any red flags or warning signs.
Another important factor to consider is themarket conditionsat the time of the ICO. If the cryptocurrency market is in a bearish cycle, it may be more difficult for an ICO to raise significant amounts of money. Conversely, if the market is bullish, there may be more investor interest in ICOs.
Finally, it's important to keep an eye onregulatory developmentsin the cryptocurrency space. As governments around the world begin to take a closer look at cryptocurrencies and ICOs, it's possible that we may see more regulation in this area. This could have an impact on the success of ICOs in the future, so it's important to stay informed.
In conclusion, while the ICO market may have cooled off in 2018, there are still plenty of opportunities for blockchain startups to raise capital through ICOs. As always, it's important to do your research and consider the market conditions and regulatory environment before making any investment decisions.