Yesterday ICORating released a report, which outlines the main trends in the ICO market in Q2 ‘18.
The research focuses on geographical distribution and the post-ICO state of the projects to evaluate how profitable it was to invest in blockchain-based startups in the Q2. The report also covers the current condition of institutional funding in the ICO industry, due to the fact that the number of focused crypto funds is steadily increasing.
ICORating points out a sharp increase in the share of institutional capital. During the reported period, individual investors have been less active, which is a continued trend from the Q1. This has to do with the fact that project requirements are getting stricter in order to appeal to big institutional investors.
According to the report, exchanges continue to grow in influence they exercise on the market. The success of ICO projects largely depends on their relationships with exchanges because the demand for tokens on the secondary market proves to be a crucial factor in the value of the project.
In Q2, private sales became the preferred token distribution model for many projects. All this points to the fact that the ICO industry is seeing more recognition from big players, and ICO are now increasingly being funded from institutionalized sources.
Some of the findings include:
- 55% of all ICO have failed to complete the crowdfunding, which is 5% more than in Q1.
- In Q2, there has been 10.83% more projects that wanted to raise capital at the idea stage than in Q1.
- North-American projects received 64.67% of the funding raised by all the ICOs.
- The median return from tokens was -55.38%, as opposed to +49.32% in Q1.
- 53% of all Dapp ICOs failed to raised $500,000.
Click here for full report.
ICOrating is a rating agency for independent analytical research on ICO projects. Since its launch in September 2016, the company has reviewed and rated over 400 ICOs.