2018 is the biggest year yet for ICOs

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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