According to what analysts are saying, the recent market rally in the cryptocurrency industry is helping ICOs boom. The sentiments from the investors seem positive, and as such, the sector can’t help but climb upwards. The reports gathered from experts is showing that ICOs have recorded huge success since the 21st of May.
Experts believe that the reason for the positive outcomes is because of the high-quality projects which these companies are offering. Projects which the community rates 3 to 3.5 have been responsible for 85% of the ICO income in May. This increase is different from the 68 percent which these ICOs recorded in April. Note that any project with such ratings on a scale of 1 to 5 is not bad at all.
This week, experts have counted 157 published projects which increased the total to 5,512 projects this month. Also, there are 287 ICOs, and the community is expecting up to 140 token sales in the months ahead.
When looking at the data of the funds which these ICOs raised, it seems unbelievable. For instance, Bitfinex raised $1billion IEO (initial exchange offering). This goes to show that the amount of money that came from only the sale of tokens is $1.075 billion. IEOs is an alternative token offering which only popular crypto exchanges handle. Before these exchanges carry out the sales, they vet each prospective investor and even the project. The reason for doing this is to prevent scam or fraud.
Bitfinex is not the only exchange to raise such a huge fund from IEO. For instance, Poseidon & Economi IEOs also raised $2.4 million & $10.5 million each. According to the experts’ reports, if you total all the money from the popular 5 IEOs, you’ll get $15.5 million. This figure is not with the amount from Bitfinex. One of the reasons for the higher records in May is because the company raised the highest funds. So, this month recorded the highest fund of 2019.
From our data, it shows that May & June 2018 has higher funds from the sale of tokens. The data used represents a 12-month time frame which ended on the 21st May 2019. If you compare the funds using locations, you’ll realize two things. You’ll discover that the British Virgin Islands was the first while the Cayman Islands came second in all the funds. Also, there were 9 projects in the UK which showed that it had more ICOs then. However, the UK was at the 7th position in the total funds.
We believe that the reason for the Bitfinex success was the utility token LEO which it launched in May. This IEO fetched $1 billion, and BitFinex didn’t see any need to float an ICO to the public anymore.
Meanwhile, the company is in court with NYAG as the body accuses it of losing user deposits worth $850 million.
|Exchange||Volume change, 24h|