ICOs Produce Slow Start to 2019

During the first two weeks of 2019, initial coin offerings (ICOs) raised roughly $90 million, according to data published by Icobench. Of the total funds raised this year so far, $80.2 million can be attributed to the Chelle Coin ICO.

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Slow Start to 2019 for Initial Coin Offerings

47 ICOs launched during the first week of January, bringing the total number of ongoing initial coin offerings to 424. Despite the large number of ongoing ICOs, only $6 million was collectively raised between Jan. 1 and Jan. 7, comprising the smallest combined weekly total raised by ICOs since 2017.

During the second week of January, the total raised by initial coin offerings jumped substantially after Chelle Coin, an ICO for an “investment platform backed by performing North American True Estate,” generated $80.2 million from Canadian investors. Excluding Chelle Coin, the combined total raised by ICOs between Jan. 7 and Jan. 15 was $3 million.

ICOs Post Steep Decline in Fundraising During Second Half of 2018

The slow start to 2019 follows a significant decline in the average performance of initial coin offerings during the final six months of 2018.

After averaging a monthly total of $1.45 billion collectively during the first half of 2018, the combined monthly average raise by ICOs fell by 65 percent to just $500 million in the second half of the year. Additionally, the combined total raised by initial coin offerings fell short of 2017’s monthly average of roughly $850 million for the entire second half of last year.

The average sum raised by each individual ICO also fell by more than 50 percent year-over-year, dropping from $24.4 million in 2017 to nearly $11 million in 2018. Despite the decline in the average performance of ICOs, the collective total raised by ICOs increased last year, with 413 offerings raising $10.06 billion in 2017 versus 1,012 offerings raising $11.59 billion in 2018.

Singapore Comprises Leading Nation for ICO Fundraising During 2018

Nearly $1.54 billion was raised by Singapore-based ICOs during last year, equating to 13 percent of the fundraising total. The total was raised from 275 offerings, making Singapore the second most popular destination for ICO issuers.

While the United States hosted the largest number of ICOs during 2018, the 288 U.S.-based offerings accounted for $1.22 billion in raised funds last year, or 11 percent of the global total. The United Kingdom ranked third by collective total raised and number of ICOs, with 222 offerings generating $945 million.

The Cayman Islands hosted the fourth largest total raised by the ninth largest number of offerings, with $917 million raised by just 56 offerings. Switzerland ranked fifth by combined fundraising and number of ICOs, hosting 136 offerings that generated $845 million. These five countries accounted for 47 percent of the combined global sum raised by ICOs in 2018.

Do you expect that initial coin offerings will continue to recede? Are you expecting capital to shift towards security token offerings instead? Share your thoughts in the comments section below!

Images courtesy of Shutterstock, Icobench

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