In September the ICO market: Trends, capitalization, localization

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In September the ICO market: Trends, capitalization, localization

The last 12 months on the market ICO’s continued instability. During this period, was reached two peaks in terms of the number ICO, and of borrowings: in December 2017 and March 2018. Subsequently, the volume of collected funds began to decline, despite a temporary positive correction in June.

However, the number of tomenselo running throughout the year, higher than the same indicator as of September 2017. While the average project now manages to attract less capital.

Information about ICO, which was completed in September represents the current situation in the sphere of issue of tokens and crowdfunding. The overall picture is pretty grim.

Market ICO 2017— 2018: the number of tomenselo and volumes of collected funds

Note that, despite the recent market downturn, companies from the block chain sphere remains ready to launch new projects and to initiate fundraising. However, the reaction of investors is now more restrained compared to the one that they showed a few months ago.

Data for September show that the number of ICO, completed over the past month, slightly higher than the figure for August. Total capital collected 155 projects has decreased by almost $325 million compared to August, i.e. almost 46%.

Some evidence suggests that the results achieved by the current ICO projects, far from the standards of success to which we are accustomed the turn of 2017 and 2018. Only 24% ended in December of tomenselo could reach softap, and 2% hardcap.

The Ethereum remains the leading platform for issuing tokens: it accounts for almost 90%. Thus, the high volatility of the ether can affect many startups.

In the analysis of the capital collected by the ICO over the past 12 months, the downward trend compared to a peak of $1.7 billion (March 2018) is clearly visible especially from the end of spring. It seems that this trend has intensified in recent months, despite some correction in the beginning of the summer we returned to the situation prior to September 2017.

Countries and sectors: Stable trends

Although ecosystem ICO grows quite slowly, it can be argued that it is stable, taking into account such characteristics as the distribution in the offering certain advantages on the country or the concentration of projects relating to key sectors blockchain economy.

The geographical distribution of ICO projects. September 2018

Funds collected in the ICO. September 2018

The geographical distribution of projects that have completed the process of fundraising this September, confirms a steady trend, within which there is a group of countries — the leaders in ICO. It includes the USA, Singapore, UK, Russia, Switzerland and Estonia. In these States there are the head offices for approximately half of all companies that conducted tocancel 2015.

For example, the USA in the long run kept the lead, despite the severe restrictions that in 2016 not allow American citizens to legally invest in any ICO. These limitations arose as a result of the Commission securities and exchange Commission interpreted the securities Act from 1933.

The geographical distribution of the ICO completed projects starting in 2015

Funds collected completed ICO, starting in 2015

To monthly data for individual jurisdictions should be approached with caution: the rating could vary in the short term due to certain major projects, “assigned” to any country, and also because of the different tax havens, attracting significant resources.

Left: top 10 industries by number ICO starting in 2015. Right: top 10 industries by volume of funds raised during the ICO, starting in 2015

As for the question of which companies dominate in the sector, the Sep confirms the dominance of key industries — IT and financial technologies (cryptocurrency and cryptocurrency trading platforms). Projects focused on the application, the more distant from the basics cryptoeconomy (for example, tourism-related and charity), remain in the minority.

Left: top 10 industries by number of ICO (September 2018). Right: top 10 industries in terms of funds collected in the ICO (September 2018)

September as a month of challenges for leaders

Even if we consider the data over a relatively short period, you may notice that a fairly limited number of projects is in the focus of the market, the level of success is not always directly proportional to the size of the project. In September, five top ICO (in terms of volume of capital) gathered more than 35% of all funds invested in this market, and last month, this concentration exceeded the level of 57%. And on the two largest ICO September accounted for almost 22% of available capital.

However, none of these leading players failed to collect the maximum amount declared when entering at the start, and the proportion ranged from 78 to 30% of hardcap.

The fact that even projects managed in September to attract a significant share of the funds, have completed their ICO on the frontier, far from the intended, indicates how difficult it is now to create hype and to win the favor of investors.

Comparing levels of success of tomenselo in September 2017 and September 2018, confirms that the current market situation can not but cause concern. A year ago 95% of the ICO reached softcap and 29% hardcap (however, data is available only for projects that are exactly the specified size hardcap). Now the picture is quite different: in September of 2018, the level of achievement of hardcap decreased by 64%, and softcap — 7%.

“Comer” shows the “weather” on the market ICO, based on the total index of success that takes into account the level softcap and the total volume of collected funds

Insights

The turbulence that gripped the markets of crypto-currency assets in the past month, startups are not deprived of the possibility to Finance their projects through ICO, but greatly complicate this task. Despite this, you can see that certain trends persist in particular geographic and sectoral distribution. In General, considering the variety of fundraiser remains a viable, if judged by the number of ICO, concluded from month to month.

According to the materials Cointelegraph

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