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2018 is the biggest year yet for ICOs

(Image credit: Image Credit: Geralt / Pixabay)

Initial coin offerings (ICOs) have managed to rake up some serious money for their businesses, new figures have shown.

According to a report by PwC’s strategy and consulting division Strategy& and Switzerland-based Crypto Valley Association, blockchain start-ups have raised a total of $13.7 billion in the first five months of the year, almost double the amount raised for the whole of 2017.

In 2017, a total of $7.0 billion was raised.

There has been a total of 537 coin offerings this year, but the two biggest ICOs are Telegram and EOS. Telegram raised $1.7bn, while EOS (which was off to a pretty rough start), managed to raise $4 billion.

ICO, or Initial Coin Offering, is a process in which blockchain-based start-ups offer their products' tokens to early investors under super affordable prices. That way the start-up gets funded, and investors get tokens which later can, potentially, earn them lots of money.

Since 2013, a total of 3,470 ICOs were announced, but the report says that roughly a third (30 per cent) of those ended up being successful.

The United States remains a leading destination to host ICOs, with 56 token sales registered raising $1.1 billion in the first five months of 2018, reinforced by “clear and firm regulatory requirements,” the report said.

ICOs have a ruined image and have been banned and unbanned in multiple countries around the world, due to the fact that some people used it to scam investors out of their money.

Image Credit: Geralt / Pixabay

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.