The ICO industry is one that’s been a rollercoaster ride since last year when it gained mainstream popularity. ICOs took over an industry that had been dominated for decades by the few elites in the venture capital and hedge fund firms and made it possible for anyone with some bucks to invest to put them into promising startups. However, things have greatly changed and according to a new report, investors in German ICOs have lost over 90 percent of their investment. The report comes on the back of yet another report that revealed that VC firms have one again began taking over the industry they were almost pushed out of.
U.S Loses Dominance As VC Firms Inject $4 Billion
Venture capital firms have tripled their investment in the crypto and blockchain industry in the first three quarters of the year compared to the whole of 2017. This is according to a new report by blockchain and crypto research firm Diar. The report revealed that in the first nine months of the year, VC firms have invested $3.9 billion in blockchain startups. This represents a 390 percent increase over the $1 billion registered in 2017 and shows a revamped appetite for the industry despite the regulatory uncertainty.
Beijing, China-based ASIC chips manufacturer Bitmain was the most funded company having raised $400 million over the year. The company, which controls close to 80 percent of the ASIC market, was followed by Dfinity, Basis and R3 which all raised over $120 million. The most active VC firms in the industry were the Digital Currency Group which closed 110 deals, followed by Blockchain Capital and Pantera Capital which together closed over 100 deals.
The U.S was dethroned as the prime ICO destination in the world for the first time in August, yet another report revealed. The U.S with 16 ICOs launched was second to Singapore which had 17, the report by data collection and analysis firm Elementus revealed. The U.K at 9, Switzerland at 5 and Russia at 1 were third, fourth and fifth respectively in August. The report further revealed that despite the much publicized decrease in funding for ICOs, blockchain projects were still raising a healthy amount of money. In August, $1.466 billion was raised through ICOs, an increase of 44 percent over the total raised in July. The number of ICOs that raised at least $100,000 however has declined steadily as investors are becoming more enlightened on the projects that are likely to deliver on their promises.
In August, only 22 percent of the ICOs managed to raise over $100,000, down by one percentage point from the figure registered he previous month and down by 17 points from this year’s high of 39 percent which was achieved in February.
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