6 years later: Where is the crypto market now?
Since 2013, the crypto market has experienced a lot: ups and downs, scandals, investigations ... Here are the results of six years of the cryptocurrency world.
On July 31, 2013, the Mastercoin project team launched the first-ever ICO. During the month of the campaign, 4.7 thousand bitcoins were collected, which at that time was approximately 500 thousand dollars, but later the price of bitcoin rose above $ 1000, and the amount of capital raised amounted to $ 5 million.
However, Vitalik Buterin with his Ethereum project brought fame to the initial placement of tokens. In July 2014, 31.6 thousand bitcoins were collected as part of the campaign, which was equivalent to $ 18.5 million. in the first weeks of trading in August 2015, Ethereum capitalization reached $ 100 million.
Since 2016, the popularity of ICOs has only grown. However, according to the ICObench analytical agency, in the entire history only in 31.3% of cases the ICO organizers were able to collect the declared amounts of funds. In addition, of the 718 projects that entered the ICO in 2017, only a year later only 43 became less profitable for investors (due to an increase in the cost of tokens) - less than 6%.
5 largest ICOs:
- EOS ($ 4.2 billion)
- TON ($ 1.7 billion)
- Bitfinex ($ 1 billion)
- Tatatu ($ 0.6 billion)
- Dragon ($ 0.3 billion)
If 2017 could be called the year ICO, in 2018 the situation has changed. 70% of the tokens that appeared last year fell in price after the initial offering. Losses of some companies amounted to tens of millions of dollars.
In the first place in the ranking of losers is the Israeli company Sirin Labs, which plans to release its own blockchain phone. She managed to raise $ 158 million (!) Through an ICO, but after that, the company's capitalization fell by $ 141 million. Sirin Labs could not be saved even by the legendary player of Barcelona and Argentina's national team Lionel Messi, who became the company's ambassador. Losses of other projects are also unpleasantly surprising: for example, PumaPay lost $ 102 million, Envion - 96 million, and Paragon - 92 million.
The results of the first quarters of 2019 indicate that this year is unlikely to return the ICO to the peak of popularity. If in 2017 57% of campaigns were successful, in 2018 - 40%, then in the first half of 2019 - only 33%. Apparently, ICO is turning into a regular financial instrument with its advantages and disadvantages.
But what is going on now on the cryptomarket?
In the second quarter of this year, the volume of placements of cryptocurrency projects has grown significantly compared to the beginning of the year. According to Bloomchain Research, a total of projects raised $ 2.25 billion in ICOs, STOs, and IEOs in the second quarter. An increase of 91% compared to the first quarter.
Popularity is gaining a new form of token placement - IEO (Initial exchange offering or initial exchange offer). In such placements, the exchange takes a key role: it is responsible for project audit, customer verification, and marketing. In the second quarter, every third project chose this particular placement method.
At the same time, there were not very many large placements on the market. Only every twelfth project raised more than $ 25 million. More than half raised up to $ 5 million on ICO, STO and IEO.
There are so many things that a company need to do in order to make a successful IEO. If you are considering an IEO for your cryptocurrency project, you probably have some questions about how to market…
The data shows that Binance has, by far, the highest average USD return on IEOs across the examined exchanges while Bittrex has the lowest (and negative) USD return