ICO trends CW27: boring, but that’s good

This post covers ICO fundings for CW 27 / 2018 (i.e. from 01.07.2018 to 08.07.2018)

See the slide deck or read the full report below

Summary

  • Less finished ICOs than last week (7 vs. 22)
  • Lower investment volume than last week ($226,438,792 vs. $31,487,200)
  • Less invested industries than last week (three vs. ten)
  • The present industries (Digital Asset Management, Cryptocurrency trading and investing, and Identity) indicate work on the building blocks
  • One ICO’s (possible) shutdown indicates that “scams” are still present
  • Small number of ICOs indicates the shift from ICOs to products
  • This report relying fully on quantitive data is only partially useful without qualitative data

Table of Contents

Overview

The week from 01.07.2018 to 08.07.2018 saw a total of 7 finished ICOs with a total investment volume of $31,487,200 across three industries.

Alternatively, there were 6 finished ICOs with a total investment volume of $31,487,000 also across three industries because Loandex seems to have shut down. Indicators are an unreachable website and twitter-profile.

This week’s investment volume is considerably lower than the $226.438.792 last week. However, if we discount the $200.000.000 EOS ICO, then the figures become more alike. Nevertheless, there were three times more ICOs last week (22 last week).

Read the full report for last week here.

Deals / Volume per industry

Deals Volume
Cryptocurrency trading and investing 4 $15,737,000.00
Digital Asset Management 1 $9,450,000.00
Identity 1 $6,300,000.00
Grand Total 6 $31,487,000.00

See the full ICO list at the bottom of the page.

Investment distribution

The $31,487,000.00 were split across four ICOs

and two investment ranges (0 and 1.000.001 – 10.000.000)

ICO Deals per investment range

ICO Deals per investment range

Investment bracket Deals (absolute) Deals (%)
0 2 $0.33
1.000.001 – 10.000.000 4 $0.67

Industry breakdown

Due to the low amount of data, conclusions are difficult here, but for what it is worth Cryptocurrency trading and investing received the most deals (4 or 67%) but only 50% of the total investment volume. The remaining 50% ($15 Mio.) were split across Digital Asset Management and Identity.

Industries:

ICO Deals per Industry

Deals / Volume per industry Deals Volume
Cryptocurrency trading and investing 4 $15,737,000.00
Digital Asset Management 1 $9,450,000.00
Identity 1 $6,300,000.00
Grand Total 6 $31,487,000.00

Nevertheless, I included the industry breakdown because I consider it a solid representation of the overall state, namely that a lot of activity happens around the building blocks. Furthermore, I believe that their repeated appearance following last week’s report is further supporting their relevance. As such, Identity projects were not only present in last week’s report but have in general been receiving attention since the early days of Bitcoin. Having ICOs in the „Cryptocurrency trading and investing“ industry shouldn’t neither come as a surprise because they are one of the most basic tools. „Digital Asset Management“ is similarly essential. Below it is explored in more detail.

Digital Asset Management

Among other things, with Digital Asset Management I refer to the issuance of asset-backed, non-fungible tokens using blockchains. Another term is tokenization.

Tokenization is one of the Cryptoeconomic Primitives and blockchain building blocks and the counterpart to traditional security issuance. Tokenization matters as the traditional security issuance process is an essential but complicated part of the financial system. The major reason for this complexity lies in the amount of involved (centralized) stakeholders. The repot Traditional security issuance vs. blockchain-based tokenization describes these issues in detail and explains how tokenization can solve them. Read it here.

Tokenization was also present in last week’s report with Invox (factoring company) and Equi Fund (tokenized Venture Capital and Real Estate).

This week there was only one addition; 0xcert Protocol. Whereas for Invox and Equi Fund tokenization is a means to an end, 0xcert Protocol is a – yes – protocol whose sole purpose is tokenization. TrustToken, who follows a similar strategy (although no protocol and not open-source), recently raised $20 Million in their token-presale, among others by a16z. Although I have looked into over 60 blockchain startups working on tokenization, 0xcert Protocol was not part of it. Thus, unfortunately, I cannot say more about it. If you can, I would be happy to hear from you.

See 60 blockchain startups changing securitization

Conclusion

From an ICO perspective, there are only a few takeaways. Despite the small number of ICOs, I believe that the appearance of ICOs from Digital Asset Management, Cryptocurrency trading and investing, and Identity is telling about the industry’s direction, namely that people are working on the building blocks.

Also, although Loandex’s (possible) shut down was a single occurrence, I still consider the presence of such „(possible) shutdowns“ (not calling it a scam, [yet]) to be the rule and not the exception. I am looking forward to seeing this trend reverse.

Moreover, I consider the small number of ICOs not necessarily negative; interest in the industry seems to be still present, but it appears to have shifted from “ICOin” to building.

The emphasized seems leads to the final conclusion; although pure funding data is important, it shows only part of the picture which makes such reports only partially useful. Therefore, more qualitative data will be included next week.

If you want to share such data with me (e.g. news or new products), I would be happy to receive it:
contact@leobosankic.com

Full ICO list

Crypto Description Investment height Industry
0xcert ProtocolEdit 0xcert is an open source protocol that translates one-of-a-kind digital or real-world assets into non-fungible tokens (NFTs). (Source: https://0xcert.org/?utm_source=icodata) 0xcert is an open source, permission-less protocol for validating the existence, authenticity and ownership of unique digital assets on the blockchain. (Source: https://www.icodata.io/ICO) $9,450,000.00 Digital Asset Management
BitScreenerEdit BitScreener unifies the domains of 2000+ cryptos and 100,000+ stocks in a single tracking and analyzing platform supported by the incentivized user community (Source: https://tokensale.bitscreener.com/?utm_source=icodata) BitScreener is building a financial data ecosystem that unifies the domain of cryptos and stocks in a single platform. (Source: https://www.icodata.io/ICO) $6,720,000.00 Cryptocurrency trading/investing platforms & data
Bronix Edit Are you in search of an ultimate place to do bronix(BRNX) transactions? Bronix offers you a completely safe environment to buy and sell BRNX token online. (Source: https://bronix.io/) $0.00 Cryptocurrency exchange
CarboneumEdit Carboneum is creating a decentralized infrastructure and protocol for social trading, revolutionizing how traders interact with each other and make investments. (Source: https://www.icodata.io/ICO) $0.00 Cryptocurrency trading/investing platforms & data
DACC Edit Community Smart Contract Dapps (Source: http://dacc.co/?utm_source=icodata) DACC is the world’s first content-based blockchain that features identity and access management (IAM) at the infrastructure level. (Source: https://www.icodata.io/ICO) $6,300,000.00 Identity
Midas ProtocolEdit Midas Protocol – An intelligent platform to manage and invest cryptoassets. Anytime – Anywhere – Secured! (Source: https://midasprotocol.io/?utm_source=icodata) Decentralized Portfolio and Asset management Platform for everyone. (Source: https://www.icodata.io/ICO) $9,017,000.00 Cryptocurrency trading/investing platforms & data

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