Tag - Space

Crypto Space Is Enjoying Institutional Investment

Crypto Space Is Enjoying Institutional Investment

In a report published by ICORating for the second quarter of 2018, it was revealed that the Initial Coin Offering market has more than doubled in a year. Being an independent rating agency ICORating conducts independent analytical research to gauge the ICO market and ICOs.

As per the report, ICOs have been able to raise more than $11 billion in the form of investments till date in 2018. The numbers are ten times higher than the total amount of investments accumulated in Q1 and 2 2017.  In the second quarter of 2018, $8 billion was raised by 827 projects through funding which is 151 percent greater than $3 billion raised in Q1 2018.

Most of the rise happened due to EOS project which collected $4,197,956,135 from a year-long ICO.  The report also noted that Europe had outperformed others with 46 percent of the newly launched projects while most of the investment has been made by North America. Asia has experienced a dip in a number of launched projects, but an increase in funds rose.

The more shocking finding of the report stated that retail investment in the sector has considerably decreased while it has been continuously injected with institutional level capital.  It was speculated that the current trend would multiply the requirements of a project. On the other hand, the potential of an ICO to raise funds will get dependent on its reputation with investment funds.

It should be noted that the top ten industries by funds raised were driven by blockchain infrastructure, financial services and banking and payments with a total of over $1 billion through raised assets. All other industries were led by financial services both in the number of projects and the number of funds drawn.

Back in July, analysts from the Crypto Finance Conference informed that Switzerland, U.S., and Singapore are the most favorable countries for an ICO. The findings were extracted from the public space data of top 100 ICOs by country. They were judged on the amount of funds raised and the number of launched projects.

Talking about the U.S., Tezos has become the first company to be alleged with civil claims. The company has been accused of violating securities laws through its ICO. Recently, a federal judge terminated a motion focused on dismissing the case. People defending the motion claimed that the company was not bound under laws of US Securities and Exchange Commission’s (SEC) as it is part of a Switzerland based Foundation.

Thus, any company that does not bind with the regulations set by authorities is bound to get knocked down in America. Some experts predict that SEC might be coming up with stricter laws over company authentication and ICO. The country needs noticeable changes in authoritative measures taken against fraud start-ups that have caused a fortune to investors.

As for now, it is better to operate from Singapore or the Swiss Alps that are trying to use cryptocurrency for further developing their nation. Hence, ICO still remains one of the better ways to collect capital without much formality.