ICOs to Raise $8.3B in Q2 2018

But more than half of the tokensales failed to achieve their goals
09 August 2018   199

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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Pantera Capital to Intend to Raise $175M for Crypto Fund

Whether the firm can achieve its funding goal is still unclear
16 August 2018   167

Pantera Capital intends to raise up to $ 175 million for its third venture fund, focused on the blockchain and cryptocurrencies, which marks significant progress against the background of the company's other two funds: the assets of the first of them are $ 13 million, the second - $ 25 million. This is reported by TechCrunch.

As reported, company's partner Paul Veradittakit says the target amount is a “function of how fast the space is moving, the talent coming in, the opportunities, and the sizing of rounds. With more interesting later-stage investments [on our radar], too, we want to be flexible and able to move with the market.”

Whether the firm can achieve its funding goal is still unclear. According to documents recently sent to the US Securities and Exchange Commission (SEC), it has already managed to raise more than $ 71 million with the participation of 90 investors. Veradittakit calls this event "the closing of the first transaction".

One of the company's new funds, which opened last year, has a hedge fund structure and focuses exclusively on the ICO. The founder of the company Dan Morehead said earlier that Pantera takes part in the first stages of such campaigns, "basically getting a discount to the ICO price by getting in early, when it’s just a team and a white paper."

The second fund of the company is engaged in investing in bitcoin and has managed to serve a large number of investors during its existence. According to Morhed's calculations, the fund, launched 5 years ago, demonstrated a return of 10 136%.

The last fund Pantera invests in cryptocurrencies, which are already traded on the exchanges. It uses machine learning for algorithmic investment and takes into account the views of the company's management when making investment decisions.