Everyone has this feeling that we are already facing a crypto downturn, but, looking at the current ICO statistics, I cannot help noticing that investors have continued to pour their money into cryptocurrency startups up until now, seemingly not taking into consideration the regulatory crackdown that has lately been threating this intensively growing market.
In fact, the amount of funds raised in Q1 of 2018 is nearly the same as the amount raised over all previous years combined, even despite the overall fall in the capitalization of the cryptocurrency market. Not considering so-called «scam» projects, which we already have heard too much about in articles and blog posts, it is impossible to disregard the fact that the data from the largest and most popular ICOs shows an amount of collected funds of at least $7.4 billion, meaning that the amount of funds collected via ICOs has been growing annually since 2014. Even if there will be no further growth in the next three quarters, we are still talking about $30 billion for 2018 alone.
Now, assuming the same exponential growth conditions experienced since 2014, the amount of collected funds in 2019-2020 may be greater than $50 billion/year. Of course, it should be remarked that this is a quite volatile market; fluctuations in the ICO market are not as drastic as those on the cryptocurrency market, but it is also influenced by the restrictive regulation that is being introduced in certain regions and on certain tokens, as well as in the ICO verification procedure (KYC).
Well, even so, I am here to remind you that, being that at the end of 2017 the share of funds raised via ICOs was less than 1% of cryptocurrency market capitalization, this segment is still a blue ocean waiting to be explored; just beware of the sharks!