People are raising hundreds of millions selling digital coins online — it's either the future of funding or a 'bubble'
LONDON – Startups around the world are raising hundreds of millions of dollars by issuing new digital coins, a trend that has made people both excited and concerned. Over half a billion dollars has been raised through so-called "Initial Coin Offerings" (ICOs) since the start of the year, according to Richard Kastelein, a partner at the Cryptoassets Design Group, a company that helps launch ICOs.
It's an incredible amount considering that ICOs were unheard of just five years ago.
The speed at which companies are raising money is turning heads too. Gnosis, a prediction market for digital currency Ethereum, raised $12 million in just 10 minutes in April. Brave, a new web browser startup set up by the founder of Mozilla, made that look pedestrian, raising $35 million in less than 30 seconds selling "Basic Attention Tokens" last month.
"The space itself started heating up in the back end of last year," says Jan Isakovic, the CEO of new ICO platform Cofound.it. "It really caught fire since April of this year. We believe this is only going wider and wider."
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I think its a bubble for now since its easiest way to raise funds without involving any financial institutions. But with time ICO's will be the major fund raising source not only for digital world but also for other projects including charity etc
At this moment there is a lot of room for new coins and majority of public have faith in digital currency and we will have more icos raising more funds and breaking records. Lets see where the future takes us