ICOs to Raise $8.3B in Q2 2018

But more than half of the tokensales failed to achieve their goals
09 August 2018   451

According to a recent study by the ICORating, in the second quarter of 2018, more than half of the tokensales failed to achieve their financial goals.

They account for 55% of all ICOs, and this is 5% more than in the first quarter of 2018. But if we look in general, the flow of money into ICO projects does not stop - if in the first quarter of 2018 with the help of ICO $ 3.3 billion was attracted, then in the second - $ 8.3 billion. Thus, investments increased by 60%.

It is worth noting that EOS collected 4 billion for a full year, but start-ups often say that they "attracted" their funds during the month or quarter during which the ICO was completed.

The least success was shown by ICO service and utility-tokens. ICORating writes that the terms of issue, the type of the token and the metrics do not have a direct effect on the success of financing, and stresses that not all failed ICOs have had projects of poor quality.

As a result, ICORating concludes that the overall quality of projects has deteriorated significantly. Only a small group of projects managed to attract $ 50 million, while many failed to reach even $ 100,000. Only PumaPay - relatively simple payment and settlement crypto-currency solution - in May 2018 attracted $ 117 million.

Top 20 ICO Q2 2018
Top 20 ICO Q2 2018

The ICORating report also shows that the second quarter has become more bearish for the ICO market than the first one - the average ROI (return on investment) from tokens fell by 55%, while last quarter it grew impressively by 49.3%. In this recession, the overall state of the crypto market in the second quarter of 2018 can also be blamed.

The ICORating study also showed that 57% of all ICOs planned to receive funding at the idea stage. However, these projects on average collected the least amount of money.

Report says that the highest percentage of unsuccessful ICO, classified by product readiness, showed projects at the idea stage. 58% of them could not attract more than half a million dollars.

Most investors were interested in projects that have a minimally viable product. Such ICOs attracted about $ 34.5 million on average.

The most popular were such areas as finance, games and VR, investments, blockchain and social networks - they showed the largest number of ICO-projects. The number of game projects compared to the first quarter of 2018 doubled.

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Bermuda to Issue First ICO License

The first 'official' ICO that will be held at Bermuda is Uulala
19 October 2018   60

Bermuda’s Minister of National Security, Wayne Caines, said that the Uulala fintech company received the first ICO license in the region. It is reported by the Royal Gazette.

In July, the Secretary of the Treasury of the Overseas Territory of Great Britain, David Bert, introduced new regulations for fintech products and services. The bill classifies initial coin offers (ICO) as “limited business activities”.

The draft law also states that before holding a tokensals, companies must provide information about the proposed digital assets, the financing system, the amount to be raised and various technical aspects. In addition, you must obtain consent from the Minister of Finance of the region.

The CEO of Uulala, Oscar Garcia, reported that the process of obtaining a license took four months. Fintech offers a decentralized peer-to-peer network “to attract cash into the digital economy.” During the ICO, Uulala plans to raise $ 50 million.

We are looking at operating from Bermuda. The Bacardi story resonated with us — a group of Cuban Latinos who went to Bermuda and established their headquarters there. We are looking at doing something similar. Bermuda is known as a financial hub and it is very forward-thinking on blockchain and fintech.
 

Oscar Garcia

CEO, Uulala

The government of Bermuda began to develop bills for the legalization of the ICO in March. Then David Bert said that Bermuda could be an example for other countries in the field of ICO regulation.