A recent study states that from the beginning of 2017, $20 billion has been raised by Initial Coin Offerings (ICOs). This is $18 billion more than in 2016. The study was conducted by Autonomous Research, a financial research firm. The study focuses on ICOs and the regulations they have been exposed to over the past year.
According to the study, $12 billion has been raised until now in the course of 2018, while last year they raised $7 billion.
According to the report, more than 300 crypto funds have been launched to invest in crypto assets, out of which a majority are concentrated within a small minority of organizations.
It is also to be noted that more than 50 percent of ICOs have failed to raise funds and have eventually been closed. Phishing and hacking have been responsible for stealing 15 percent of all crypto assets by market capitalization. Scams and frauds constitute as much as 20 percent of project whitepapers.
The financial industry is working to build tokens into an asset class, with developments across custody, institutional exchanges, traditional financial products, and security tokens.
Third parties such as regulatory bodies, corporate advisory firm, and exchanges have formed in the ICO space to monetize solutions. They have brought the all-in price of an ICO to $1-5 million, which is then passed on to investors through unreasonable valuations.
The study highlights emerging taxonomies on the cryptocurrency space and tries to work on uniting platforms that incorporate both public and private blockchains. They also survey the regulatory and legal environment for crypto offerings across the world.
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