Trends In The ICO Market
TRENDS IN THE ICO MARKET W r i tten b y: Oren Ba hari
I C O in 2018 w ill ove rpo wer a l l fun d rai sing e n act e d in the past.
Figure 2
Figure 1: The progress of ICOs so far
ICO’s have truly erupted in 2017. Their trajectory is better than casual linear and even exponential trends seen in other emerging industries. Comparatively, another megatrend, Machine Learning and AI Automation of Industry, has only just broken free of its linear bound. The dynamism of ICO has been fuelled by the mainstreaming of Bitcoin and legitimisation of cryptocurrency at the forefront. As seen in the graph, the prospective trend of ICO count, the amount of businesses choosing a decentralised funding model, is continuously upgrading with changing sentiments. It seems as if the Bitcoin explosion gave significant asset potential to believers in the crypto-sphere, and they are searching, harnessing and exploring the next great potential spur. Notably, without both Bitcoin and Ethereums’ formation, none of this explosion in investment would be possible. Even more interesting is the explosion in the cumulative size of projects. There was only a gradual development pre-2017 in the venture ecosystem. Note, The DAO, is an investment conglomerate that raised its funds through an ICO and has now had its tokes labelled a Security by the SEC. Investors in The DAO obviously anticipated the explosion and designed an decentralized organisation. The concentration of colours within the core displays the truly rapid expansion. It also details an almost unrealistically rapid pace, further enhanced by the monumental movement of cryptocurrency in 2017 Q4. Even the magnitude of investment towards purely decentralized networks (the circle size), is often enormous. Undeniably, some these projects have been overfunded. No company truly needs over 50 million in seed funding, so the concept that these companies are raising upwards of 250 million now is outrageous. Gigantic ventures like Filecoin and Tezos will begin in 2018 if regulation does not limit their fundraising bounds. Familiar companies like Telegram are hoping to hit 1 Billion in their future ICOs, a figure so seemingly absurd it brings disgust as much as it does awe. If demand is there, significant money will continue to follow.
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