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.
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