In less than two months 2018 ICO projects have received funding in the amount of $ 2 billion, whereas for the whole of 2017 the total amount of all the money invested in the initial placement of tokens amounted to 5.7 billion dollars. But since the structure of these sales are now more focused on large investors, ordinary users had to try hard to participate in the purchase of tokens and get benefited from it. Data show that 84% of all ICO charges this year received from large investors and in the course of pre-sales of the tokens.
When the method of collective funding appeared only in the cryptocurrency industry, it was a democratic way of raising funds to help bridge the emerging cryptocurrency community. However, in 2018, the situation seems to have changed.
ICO only for the rich?
Like today, last year, big investors used the prerogative when purchasing token-ICO. For example, the token krausel BAT project Brave has become notorious that lasted for a few minutes, thanks to the «whales» who bought tokens for $ 36 million in less than an hour. The total number of participants ICO amounted to 190 people, with more than 50% of the tokens got a total of five investors.
The trend has spread to this year – all the evidence suggests that ICO cream will remove a large private investors, leaving ordinary users to be content with what remained.
The latest data published Tokendata show that from 1.97 billion invested in the ICO this year, 1.63 billion (84%) was provided to large investors. Moreover, the data do not account for 850 million dollars that were collected in a closed sale token Telegram, the event is so special that to buy were invited only the major players. For example, it is known that the General Director of Qiwi invested in the ICO project is $ 17 million. Such projects are good to help the rich get richer, but they are not able to give the users the opportunity to share in the project.
Regular users will not
Of the 94 ICO, which was tracked Tokendata this year, 28 now have tokens available for trade on exchanges. At this stage, the average value of ROI for tokens purchased through the ICO and sold on the stock exchange, is only 2.17 times, and the yield from investments in ETH 0.75 times. In other words, in many cases, it would be much more profitable since the beginning of the year to leave Fiat money than to buy the air and change it into tokens. However, this is only the first digits for the year 2018 and it is likely that the yield will increase.
Thanks to the generous discounts that are valid during the presale tokens, private investors are much easier to profit than to public sale. Given the fact that the pre-sale tokens often immediately end in decentralized exchanges, the role of the public sale is becoming less significant.
On paper, crudely more popular than ever. However, the modern ICO is hard to call a true crowdfunding, since projects put the interests of private investors is higher than regular users.