Dark Oblivion or New Transition?

Several months ago we’ve wrote an essay questioning if the ICO industry had died out, and it turned out that it was still breathing. The 2018 crypto market crash also played its role and those investors who were unfortunate enough to lose all of their spare cash were not so keen to keep on losing it. It seems that today, the ICO madness has gone quiet, and STOs have gently started taking over.

There are still a few adventurous ICO projects out there, and they aren’t afraid of challenges. Their boldness definitely deserves praise, all things considered.

But first things first, let’s have a look at what’s happened since the beginning of the year.

Numbers

According to ICObench statistics, there was an overall drop-off of the ICO market in February. With $178 million raised and 78 completed ICOs, the numbers are almost twice less than in the first month of the year.

It’s interesting that 38% of the funds raised in February went to a single project, initiated by the United Arab Emirates.

Another February trend includes a success rate that has fallen below the general average. ICObench listing is systematically decreasing.

In their report, ICObench notices that last month ICOs did alright with reaching their soft cap.

Companies are deciding to enlarge the ICO period. What once started as a one-month affair now seems to last three times longer. This can be explained by the current market state, as projects nowadays require more time to reach their targets.

If we compare the total February numbers of 2019 and 2018, it paints a clear picture: $178 million raised vs $1.6 billion.

And while some of the less fortunate ICO entrepreneurs are trying to sell their shattered dreams on e-bay, others are looking for a less shaky alternative.

STOs are currently among the positive trends and, in general, the number of STO projects has increased. In February there were 170 STOs running and 120 of them were completed and raised more than $500 million.

Although ICObench listing has a general descending trend since summer 2018, STOs are clearly earning the trust of both projects and the community.

ICO Name-Dropping

Now, let’s look back at 2018 and recall which of the ICO campaigns actually managed to succeed in raising funds and deliver (or not) what they promised.

EOS was, undoubtedly, the stand out star of the 2018 ICO round with $4 billion raised. Their campaign was also one of the longest – it lasted for almost a year. The project eventually launched its long-awaited mainnet in June, although it didn’t come without problems. Now the pressure is on and the public can’t wait to see if the funds they raised are going to be allocated wisely.

Another big-league project, Telegram, is building an open network, the new temple of decentralization. They’ve raised $1.7 billion via two rounds of private sales and are currently working on building the network as they have tough deadlines to consider. If Telegrams fails to deliver on time, investors will be reimbursed. However, GRAM token is doing pretty well and regardless of the possible roadmap delay, stays on the rising side.

But let’s jump to the beginning of 2019 for a moment. In February BitTorrent, a peer-to-peer torrent client that hardly requires any introductions, completed its ICO in just 15 minutes and raised $7.1 million. Their token has been doing quite good so far and the company plans to release its social media dapp in the second quarter of 2019.

The last (and actually the least) on our list is Petro, Venezuela’s controversial, oil-backed cryptocurrency. The project was supposed to help with the country’s economic crisis and managed to raise $735 million. However, El Petro has always been harshly criticized and the people behind it are now being accused of money-laundering and other shady schemes. Not necessarily news for the ICO business, but it’s a shame that the country still struggles.

Experts

And what are the current discussions between experts? Are they also turning skeptical?

A publisher of Bitcoin Market Journal, John Hargrave, remains rather positive.

“The ICO market is not dead, but changing,” he reassures.

The founder of iComply Investor Services inc., Matthew Unger, shares similar beliefs and points out STO’s potential:

“For every ICO we see going live today, there are at least three security tokens being launched.”

And Eric Ervin, CEO of Blockforce Capital, also adds some sense to the topic:

“As they continue to mature and people become more familiar with blockchain technology, we expect STOs to become more prolific.”

His other thought pretty much sums everything up:

“In short, ICOs aren’t dead, investors are just doing more due diligence and looking for more credible and vetted projects.”

ICOs, STOs, What’s Next?

Heard about IEO yet? Apparently, this is the next big thing! Follow Lumi’s  TwitterFacebook, or Reddit to be sure that you won’t miss our next article, in which we’ll tell you all about it! And if you want to have a constructive dialog, join our Telegram and speak your mind!