The cryptomarket had a lively beginning to 2017 with the bulls coming to rest, and losing 60+% of total market cap value in just January. Further, 2018 was turned out to be pessimistic with the downward crypto market trends. On the brighter side, the crypto market is maturing while stodgily making its way past the FOMO and FUD stages.
InWara’s study covers any and all significant trends in the ICO and the STO landscape. This study further presents data-driven insights on the crypto market which, according to experts, is poised to take some major strides in the next year.
This Study covers
- ICO Landscape 2018
- STO Landscape 2018
- 2018 Crypto Market Trend Analysis
- Private Funding Activity in ICOs and Blockchain companies
- Mergers and Acquisitions in ICOs and Blockchain Companies
ICO Landscape 2018
The USA at the Forefront in the Crypto Space
USA sustained the top position with 60% growth in ICO numbers (YoY). Surprisingly UK and Singapore saw over 180% growth in the number of ICOs (YoY). With Singapore in the second position and China showing over 100% growth in 2018, Asian markets show promise for a bright future for cryptos.
Financial Services Continue to Dominae the ICO Space
Financial Services remained the most populous sector in terms of ICOs in 2018 with over 130% growth in the number of ICOs over 2017. Media and Entertainment saw significant growth, as did Trading & Investing with crypto-based funds springing up in 2018.
2018 ICO Listings drop
The number of ICOs listed on the exchanges saw a significant drop in with less than 20% of ICOs listing tokens for public trade in 2018. Just 15% of ICOs have been listed in exchanges during Q4 2018, posing serious liquidity concerns for investors.
STOs Landscape in 2018
Security Token Offerings (STOs) Picking up Where ICOs left off
Security Tokens (STOs) are fundamentally tradable assets subjected to federal regulations and compliances. In general, investors expect STOs to deliver better RoI with fewer risks in the long run due to their underlying asset backing & regulatory security.
Security Tokens gained momentum considering compliance issues raised by regulatory bodies such as SEC in USA and FSC in South Korea. SEC came down hard on fraudulent activities (e.g. Paragon and Airfox) and that dampened the enthusiasm in raising funds via digital tokens. This erosion in investor confidence has prompted the spurt in STOs.
Number of STOs by Industry
Investments and Trading lead the Security token offerings accounting for over 20% of total STOs. Financial Services, which was the industry leader in ICOs, now stood third after Technology.
2018 Cryptocurrency Market Trend Analysis
Private Funding Activity in ICOs and Blockchain Companies
Crypto Downturn Nails Private Investment too
Q4 2018 saw over 65% dip in funds raised and VCs and institutional investors halting investments while the market tanked. However, private funding, as a whole, saw significant growth in 2018 with total funding rounds doubling as compared to 2017.
Existing Players move out as fear sets in!
Digital Currency Group was consistent with investments despite the sluggish 2018 market while others took a breather. However, 2018 have seen new entrants like Kosmos Capital, Neo Global Capital and many more joining the crowd investing in cryptos.
Interestingly nearly all the players raised Crypto-focused funds in 2018 and have attracted the best talent in the FinTech space.
Mergers and Acquisitions Activity Surges
2018 saw over 90% surge in mergers and acquisitions related to the blockchain sector. This major upswing could be linked to the crash in the price of Bitcoin (BTC) allowing VCs, Institutional investors and entities with deep pockets an opportunity to ante up in future technologies.
Blockbuster M&A deal of the year
By acquiring Poloniex, Circle is expected to address issues related to reliability and bolster scalability, thereby improving the robustness of the platform.
This executive summary provides only a glimpse of the analysis of the complete annual report. Get the complete annual report here.
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