ICO Market Gets Off To A Record Breaking Start In 2018

ICO Market Gets Off To A Record Breaking Start In 2018

Despite the broader crypto market experiencing a month-long correction, the ICO market shows no signs of slowing. Token sales that ended in the second week of January raised more than $380 million. This comes after December’s record-breaking month when token sales attracted over $1.18 billion in funding.

The ICODrops website listed 15 full token sales that concluded between the 8th and 15th of January. Of the 15 ICOs listed on the website, only 3 did not reach their target.

The largest sales were Neuromation which raised $71 million, Olympus Labs which attracted $60 million and SwissBorg which reached its $50 million hard cap.

Projects Increasingly Over-Subscribed

Five of the ICOs were by companies classified as blockchain projects, and three were classified as finance projects. The rest were classified as marketing, mobile, verification, networks and gaming projects.

The least successful ICO was by gaming loyalty project SRG which only raised $3 million of its $15 million hard cap. Marketing platform HOQU only raised 57 percent of its target, but still managed to attract $18.7 million.

The data shows that demand is still increasing amongst investors. With so many projects oversubscribed, it’s difficult to find trends in the data. If anything, it shows that investors as a whole are not being very selective.

The extent of the demand was well illustrated by verification project TheKey’s token sale which ended in minutes despite the website not working and complaints of poor communication from the project team.

The increasing demand amongst investors and the publicity that ICOs attract in 2018 appear ready to outstrip what we had witnessed in 2017. Unfortunately, that also means we are likely to see more examples of fraudulent projects and others that really have no place for a tokenised business model.