ICOs to Raise $8.3B in Q2 2018

But more than half of the tokensales failed to achieve their goals
09 August 2018   719

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.

Malaysia to Issue Law on Digital Currency

Starting from 15.01.2019, organizers of illegal ICO in Malaysia will face up to 10 years in prison
14 January 2019   110

The law on digital currencies and digital tokens of Malaysia will come into force on Tuesday,  The Star reports. From this point on, any citizen of a country who will be found guilty of conducting an unregistered Initial Coin Offering(ICO) or organizing a platform for exchanging digital currencies without authorization may face up to 10 years in prison and a fine of $ 245,000.

Malaysian Finance Minister Lim Guan Eng on Monday confirmed the information that the law enters into force on January 15. It is expected that the relevant legal framework will be fully defined before the end of the first quarter.

In accordance with the new law, digital currencies and tokens are considered securities and are regulated by the Securities Commission (SC).

Lim also noted that the financial instruments described in the law and related activities must first be approved by the SC and comply with all established requirements for securities.

In particular, we believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors. 
 

Lim Guan Eng
Finance Minister, Malaysia

According to Lim, SC will now develop regulatory requirements for ICO organizers and trading platform operators.

In November last year, Lim offered to oblige all cryptocurrency issuers in Malaysia to seek advice from the country's central bank.