The ICO Market, Is It a Fad or Just Getting Started
With the SEC issuing a recent press release regarding ICOs and the DAO, many are wondering if the days of ICOs are over.
Let’s take a look at the ICO market in 5 easy charts.
As you can see in chart 1 below, the number of ICOs has taken off in 2017. Keep in mind this is only through the first half of the year. We’ll likely end up with well over 100 by the end of the year.
The dollar volume of ICOs is soaring as well.
As you can see in the chart 2, raising capital for blockchain projects with token sales has overtaken venture capital in a big way. By now that number is over $1.6 billion and we have 5 months left in the year.
We’re also seeing a more diverse set of projects coming to market. Take a look at chart 3.
When it comes to funding, it’s way more than just crypto enthusiasts like you or I. There’s a lot of big players looking to get involved in the ICO market as you can see in chart 4 below.
Here’s the thing. Even with the explosion we’ve seen this year, ICOs are still a tiny slice in the market as you can see in chart 5 below.
The chart above is just the global crowdfunding market. Total venture capital worldwide is estimated to be $127 billion. So the ICO market can still grow a lot more and be a small slice of the pie.
I think ICOs are just getting started. They’re just better than traditional venture capital funding.
I mean, you have AngelList partnering with Protocol Labs to form CoinList, which is basically an AngelList for ICOs. The VCs are already moving into ICOs, so they aren’t going anywhere.
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Good questions - I think only time will tell
I definitely agree on the potential for growth, because of the simple fact that the number of people familiar with cryptocurrencies is growing exponentially. It is only logical to conclude that the more people become aware of this relatively new market, the more financial power will flow into it.
As a practical example, I'm focused on the upcoming onG.social ICO this month. While I'm actively researching it, none of my friends have even heard about ICO and have a vague idea of crypto. That's why at this point services like onG.social won't get as much attention as Facebook does, but it's possible that it is only a matter of time, until they start to catch up. And the diagrams in this article would begin to reflect that. : )
In the case of onG.social, I believe the migration to the platform will happen sooner than other projects. With all the censorship going on right now it's only a matter of months until major content creators start moving into the platform.
Funny you mention onG.social... a colleague mentioned it to me this past week. I'll have to check it out and write about it on Steem, Tweet it... but no FB, I try not to mess around w the FB ;-p
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I think that ICO is the most profitable investment in the future, when this is supported by a good project. For example, I like one ICO which its investment is in green energy, to me is very interesting because it is a benefit for the world.
Which one? Do tell. I've been looking into distributed energy and blockchain... Grid+ is interesting, but still learning about the space.
The project name is SunContract (SNC). This platform connect energy producers and consumers into an energy pool based on smart contract. The main idea is create a global self-sufficient energy community based on renewable energy by digitalization of electricity: Digital Energy.
Ok, I've heard of them. I checked it out a little but it's over in Europe. I like the idea though, a society changer.
Yes, the ICO is over but I bet for new ones in the same way. For me is a very interesting yield and I will be pending on that.
ICO's have a lot of potential but are very risky, when EOS came out it surged to 5$ but now is just under 2$, just gotta play the cards right
Project aside, the EOS token is shit. It's an ERC20 token and Ethereum is their biggest competitor, lol
Very interesting question!
I will wait to see :)
I agree this is only the tip of the iceberg. The decentralized, transparent, and anonymous features of cryptos like SXAS will continue to drive ICO and blockchain innovation and global expansion. https://drive.google.com/file/d/0B-aZp5_iLHZ1WUlTbHlsV01rVjA/view
Agreed. Thanks for sharing!
Many if these ICO will just take your money and have nothing to show for it. The ICO market is still in its infancy and there is a lot of risk involved so we must all do our due diligence when investing. As earlier investors we take great risks to hopefully reap greater rewards.
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Great article!