ICO Industry Gets Off to a Slow Start in 2019

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Initial Coin Offerings (ICOs) have so far amassed nearly $90 million in the first two weeks of 2019, with Chelle Coin ICO accounting for $80 million of this year’s total fund, data published by Icobench show.

According to the ICO rating platform’s recently released 2018 market analysis, between January 1 to January 7, the ICO industry has launched 47 new token projects, bringing the total number of current ICOs to 424. Notwithstanding the continuously increasing number of new ICOs, only around $6 million have been raised in the first week, the smallest collective amount raised through token sales on a weekly basis in the last two years.

However, between January 8 to January 15, the ICO sector has seen a sharp spike in total capital following the launch of Chelle Coin, an “investment platform backed by performing North American True Estate” which has recently raised over $80 million during its launch, largely from Canadian investors, on top of the $3 million total funds generated by other ICO projects during the second week of the month.

Concomitant with its markedly slow start to 2019, the ICO industry’s average performance has also taken a massive nosedive in the last half of 2018.

From averaging a collective monthly total of approximately $1.45 billion in the first six months of 2018, the ICO industry has, from thereon, dwindled significantly, dropping by as much as 65% as it raised only a total of 500 million in the second half of last year, a far cry from the monthly average raised during last six months of 2017, which brought in a total of $850 million.

A year-over-year estimate also shows that the individual token projects’ average sum in 2018 has also declined by over 50%, as it only brought in roughly $11 million, a stark contrast to the $24.4 million average capital raised in 2017. Despite the industry’s waning performance, the total sum raised in token sales throughout 2018 has far exceeded the total capital generated in 2017, as last year saw over 1,012 newly launched projects, bringing in a total of $11.59 billion, compared to 413 offerings in 2017 which have raised approximately $10.06 billion.

Singapore-based ICOs accounted for nearly $1.54 billion of last year’s total capital, commanding 13 percent of 2018’s total funds raised through crowdsales. With over 275 new token projects launched in 2018, Singapore comes in as the second most popular territory for ICO issuers, following on the heels of the United States, which saw a total of 288 newly launched ICOs, accounting for $1.22 billion or 11 percent of last year’s total capital.

Trailing behind Singapore is the U.K., which have hosted a total of 222 new offerings in 2018, equating to a total of $945 million worth of generated funds.

Cayman Islands also came in as the fourth country to raise the largest total ICO capital, bringing in over $917 million in 2018 from only 56 new projects, making the country the ninth most popular destination across the globe in terms of largest number of ICOs.