ICOs to Raise $8.3B in Q2 2018

But more than half of the tokensales failed to achieve their goals
09 August 2018   1038

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.

Bitfinex's LEO Token Whitpaper to be Released

Public stage of tokensale may not be conducted if hardcap of $1B won't be reached during closed sale
08 May 2019   268

Bitfinex Cryptocurrency Exchange published the whitepaper LEO token, with which it intends to raise $ 1 billion during the initial exchange offering (IEO).

It is expected that this amount will allow to fill the previously formed deficit of $ 850 million - the site operator will redeem tokens monthly for an amount of 27% of the profits.

Private stage of tokensale ends on May 11. If the intended hardcap won't be reached by this time, Bitfinex may refuse the public part of the campaign.

If fewer than 1 billion USDt tokens are sold by private token sale, the Issuer may thereafter sell remaining tokens at times and in a manner it deems appropriate in its sole discretion, consistent with applicable law. 

LEO Whitepaper

The issuer of the LEO token is Unus Sed Leo Limited, the newly registered IEO-iFinex platform.

The document also says that iFinex, which will be launched in June, will actively participate in the development of the second-tier Lightning Network.

iFinex has joined with a number of other companies and individuals to help develop and finalize the support for digital assets on Lightning Network. Ideally, digital assets developed and introduced by iFinex, including the LEO token, will be among the first digital assets launched on the Lighting Network.

LEO Whitepaper

In addition, Bitfinex plans to create a “a licensed and regulated security tokens exchange”, launch a derivative product with security at USDT and leverage up to 100x, as well as the Dazaar Big Data Marketplace and Betfinex exchange rates.

Another project will be the modular set of tools, libraries and protocols μFinex, based on the principles of open source. It will be used in both exchange and derivative products.

It worth reminding that in late April, the Attorney General’s Office of New York reported receiving a court order against Bitfinex in connection with the alleged loss of the last $ 850 million and the concealment of this fact from market participants.

Representatives of the trading platform said that we are not talking about permanent loss. These funds are frozen in bank accounts of Panamanian processing Crypto Capital Corp., located in four countries.

To ensure liquidity, Bitfinex was forced to use Tether Limited's funds for a loan and, according to the AG’s Office, has already received $ 750 million from the company's reserves. This was considered by the department as a crime.

On May 7, the New York State Supreme Court upheld the injunction against the Bitfinex Bitcoin Exchange, which does not allow Tether Limited to use its reserves for Exchange lending and other investment activities.