ICO trends forecast for 2018
The first ICO emerged three years ago, but just in the late 2016, this fundraising method began to gain momentum. ICO projects had raised around $1 billion by that time, and in a year – four times more. What influenced the growth and what is the current situation in the ICO sector?
Evolution of the ICO market in 2017
The growing popularity of cryptocurrencies as well as relatively simple, as compared to IPO, conditions of ICO conduct facilitated the development of the ICO market. According to the data of ForkLog Research, in 2017, the largest amounts of money were raised by projects working in the following areas:
- infrastructure ($630 million);
- finance ($520 million);
- decentralized data storage ($290 million);
- commerce and advertising ($200 million);
- communications ($160 million).
Last year, one of the keynote peculiarities of the ICO market was not only the significant growth of investments but also unprecedentedly quick earnings. Many projects managed to raise the required sum within several hours to several days.
However, according to the data of ICO Rating, the ICO market declined in the second decade – the share of successful projects comprised just 20% in autumn. It is connected with the fact that supply exceeded demand, fraudulent and weak ICO projects emerged.
Prospects of tokensales in 2018
The lack of regulation has become one of the main problems of ICO. In 2018, startups are getting less of financing and set less ambitious goals. Besides, it is getting more complicated to satisfy and convince investors without the thorough elaboration of the white paper as compared to the year before. For this reason, promises and prospects of projects seem less progressive but more realistic.
Since the beginning of the year, the popularity of the so-called closed ICO rounds has been growing, featuring a restricted number of investors. In this case, the investment amount should start from $1 million.
2018, governments are expected to have a greater impact on the ICO market. For instance, the US authorities are drafting bills that would give ICO projects the status of securities. According to expert assessments, the growth of the ICO market generally relates not to the number of new projects but to a more thorough elaboration, including analysis of real economic prospects.
Demand for intermediaries is growing, for instance ICO ranking agencies, or independent experts.
5 most interesting ICO projects in 2018
Nucleus Vision offers a system based on the IoT and blockchain technologies. The product is designed for large store chains that value accurate and objective analysis of customer preferences. According to the concept, an outlet is equipped with sensors that are synchronized with the customer’s smartphone and add data about his or her actions to the distributed ledger. Using the results of data analysis, the store chain can create targeted offers for specific customers. The ICO was conducted early this year, raising $40 million.
The main idea of the offering is that users can share the resources of their own computers and disk space in exchange for tokens. Bluzelle is a decentralized ecosystem of data that allows standalone individuals and enterprises to monetize information using BLZ cryptocurrency. The ICO raised $19.5 million.
The project gives users a possibility to pay with cryptocurrency in shops. Transactions are run using an app that can be installed to your smartphone. The system uses tokens called STK. Stack has signed a partnership agreement with MasterCard, which substantially increased both the interest in the project and the price of tokens. The campaign raised $17 million.
Dether is another project that promotes cryptocurrencies as a payment means. It allows buying Ethereum for fiat money without intermediaries and spending it at outlets. Transactions are run using a smartphone app. The startup’s ICO finished in February and raised $13.4 million.
BlockMesh is a decentralized and cheap method of communication based on the mesh network technology. Mesh communication allows network-connected devices to have equal data capabilities. In fact, the company builds a free communication network and acts as a main rival of cellular carriers. One of the peculiarities of Mesh is that participants are incentivized with tokens for every megabyte of data that runs through their devices. The ICO raised $3.4 million.
By 2018, investors have started to give more attention to the investigation of the core idea of projects that launch ICOs. It made startups work harder on their concepts. For a successful tokensale, you should convince and catch the interest of investors, as most of them have not only heard about the benefits of ICOs but are also able to detect poor business plans. All of it signifies the maturity of the global ICO market.