Cryptocurrency and ICO market Q1 2018 results
Regulation of cryptocurrency is rapidly tightening, countries lay down the rules, large financial companies buy up exchanges. Bitcoin difficulty level continues to grow steadily despite the drop in quotations, that indicates a significant investments in mining and the expectation of exchange price growth.
The cryptocurrency market is undergoing a deep correction in Q1 2018 after a sharp increase. The drop from the peak values was 70%, the market and trading volumes retreated to the beginning of December 2017, the bitcoin dominance has increased almost 1.5 times from the beginning of 2018 and now it is 44%.
In general, the cryptocurrencies move synchronically due to the high correlation.
Negative news from the financial regulators about tightening requirements for exchanges and ICO rules, restrictions on central banks to conduct banking operations with cryptocurrencies, the release of the crypto exchange reserves of the Mt. Gox, and advertising ban in major search engines and social networks have prevailed in Q1 2018.
The ICO market continues to develop rapidly despite the difficult situation, exceeding the values of the whole last year just in Q1 2018. Telegram has raised $ 1.7 billion during the ICO, EOS - $ 700 million, Dragon - $ 320 million.
Platforms for working with smart contracts, decentralized apps, interblockchain solutions, and payment processing systems were of the greatest interest of investors in Q1 2018.
About 50% of all ICOs that were conducted in Q1 2018 were registered in the top five countries.
The ICO market is still asymmetric and 40% of all raised funds account for 1% of ICO projects. The industry is becoming more like a traditional VC market where most of the funds come from large investors.
More often the majority of tokens are sold during pre-sales and closed sales as market continues to grow. This is achieved mainly by those projects, that already have existing products.
With regard to the advertising ban in search engines and social networks, marketing budgets will be redistributed towards alternative channels to attract the target audience:
- Road shows, crypto events and meetings.
- Partnerships with opinion leaders and celebrities.
- Connection with large investment funds.
Independent rating evaluations of investment attractiveness. The results of Q1 2018 demonstrate that the current ICO market is aimed at transparent regulation and control.
Many startups conducted ICO will not be able to fulfill their obligations and go bankrupt. This problem raises the attention of government regulators and tightens the entire ICO procedure.
The ICO market will continue to grow despite regulatory problems. Although the return on ICO investment will decrease (compared to 2017), it will continue to be higher than in the stock market. More and more large players from traditional markets will invest considerable capital and thereby increase market capitalization.
General dynamics of the cryptocurrency market, Q1 2018
The total capitalization of the cryptocurrency market has decreased by 59% to $ 254 billion during Q1 2018. The historical maximum value of the market capitalization was reached on January 7th, 2018 ($ 836 billion), and the end of the quarter demonstrates the minimum value: the capitalization was $ 254 billion as of April 1st, 2018. The decrease was 70%, the market has declined 3.3 times. The market volume was only $ 26 billion at the same time a year ago on April 1st, 2017.
*Information provided by coinmarketcap.com
The total capitalization of Altcoins (excluding Bitcoin's capitalization) has decreased by 61% since the beginning of the quarter and amounted to $ 145 billion as of April 1, 2018, slightly outstripping the decrease of the Bitcoin exchange rate.
Bitcoin market capitalization fell by 60%: from $ 293 billion to $ 119 billion.
*Information provided by coinmarketcap.com
The consolidated index of DRI (market capitalization index cleared of "dead" and non-traded coins) decreased by 68% from its maximum value of 682.01, registered on January 6th, 2018, to 221.18 as of April 7th, 2018, that brought the current market capitalization closer to the beginning of December 2017. The value of the index expresses the capitalization in USD billion.
*Information provided by DRI DigRate
The price of predominant currency - bitcoin- decreased by 51% during the first quarter (from $ 14 112 to $ 6 973). Most altcoins are also in the phase of deep correction.
*Information provided by coinmarketcap.com
Bitcoin market dominance has increased by 6.65% (from 38.27% to 44.92%). It is worth noting that Bitcoin's share in the market fell recordly, and the bitcoin dominance index reached 32.68% on January 4th, 2018.
*Information provided by coinmarketcap.com
When comparing the dominance indices as of April 1st, 2017 (67.24%) and April 1st, 2018 (44.92%), the Bitcoin domination has decreased by almost a third, despite the fact that the dominance of Bitcoin for Q1 2018 has increased. This demonstrates the overall trend of decreasing Bitcoin's popularity compared to the altcoins due to the active growth of such currencies as Ethereum and Ripple, as well as an active increase in the number of altcoins.
*Information provided by coinmarketcap.com
Cryptocurrency correlation matrix from January 1st, 2018 to April 1st, 2018
*Information provided by sifrdata.com
It can be concluded that the vast majority of cryptocurrencies have a positive correlation with the index ranging from 0.65 to 0.87. This demonstrates that cryptocurrencies in general move synchronically, and the cryptocurrency market capitalization is influenced by the general external factors.
Important news of the reporting period:
The actual situation on the market
Impact on the market
|02.01.2018||New cryptocurrency rules just came into effect
in South Korea||The market began to
|04.01.2018||China is Not Planning to Ban Cryptocurrency
Mining Farms||Market growth ||Negative|
|08.01.2018||South Korea’s Biggest Banks Face Inspection
into Cryptocurrency Accounts||The market began to
|10.01.2018||Bitcoin ETF Applications Forced to Withdraw
Under SEC Scrutiny ||Downturn ||Negative|
|11.01.2018||Authorities raid South Korea's largest
cryptocurrency exchanges||Correction (growth)||Positive|
|15.01.2018||China to Block Access to International
Cryptocurrency Exchanges ||Downturn ||Negative|
|15.01.2018||Cryptocurrency ban in Indonesia||Downturn ||Negative|
|15.01.2018||Chinese authorities plan to block all
cryptocurrency platforms ||Downturn ||Negative|
|16.01.2018||Brazilian regulator banned funds from
investing in cryptocurrencies ||Downturn ||Negative|
|17.01.2018||Arbitration Manager of Mt. Gox sold 8,000
bitcoins ||Downturn ||Negative|
|18.01.2018||South Korea ‘Considering’ Shutting
Cryptocurrency Exchanges ||Downturn ||Negative|
|19.01.2018||China orders banks to stop financing
cryptocurrencies as noose tightens around
|19.01.2018||India sends tax notices to cryptocurrency
investors ||Downturn ||Negative|
|19.01.2018||SEC Won’t Approve Any Bitcoin ETF Until Key
Concerns Are Addressed||Downturn ||Negative|
|19.01.2018||Global Securities Regulator warned of risks
associated with ICO ||Downturn ||Negative|
|23.01.2018||South Korea will ban anonymous crypto
trading from January 30 ||Downturn ||Positive|
|23.01.2018||China Moves to Crack Down on Digital
Currency Pyramid Schemes||Correction (growth)||Positive|
|24.01.2018||8 Major South Korean Cryptocurrency
Exchanges Fined $130,000 For Poor Security
Standards ||Correction (growth)||Negative|
|25.01.2018||Federal Law “On Digital Financial Assets”
Drafted by the Russian Ministry of Finance ||Correction (growth)||Negative|
|25.01.2018||Class Action Lawsuit Filed Against Failed
Cryptocurrency Exchange BitConnect ||Correction (growth)||Negative|
|26.01.2018||Coincheck promises refund after $500m
cryptocurrency heist||Correction (growth)||Positive|
|29.01.2018||Indonesia’s central bank considering adopting
blockchain technology to launch digital rupiah||Downturn||Positive|
|29.01.2018||Japan’s Financial Regulator To Conduct
Inspections Of 15 Unregistered Crypto
|30.01.2018||Philippines Authorities to Issue
Cryptocurrency Regulations in 2018||Downturn||Negative|
|31.01.2018||Facebook is banning cryptocurrency and ICO
|31.01.2018||Arbitration Manager of Mt. Gox sold 6,000
The actual situation on the market
Impact on the market
|01.02.2018||US Court Freezes BitConnect Assets as Lawsuits
|02.02.2018 ||Japan’s regulator raids Coincheck exchange||Downturn||Positive|
Supply of USDT Increases Significantly Following December 6th Subpoena
|05.02.2018||Arbitration Manager of Mt. Gox sold 6,000 bitcoins||Downturn||Negative|
|06.02.2018||Vice-President of the Taiwan Administration
recommends the country's regulators to prepare
for the fall of cryptocurrencies||Downturn||Positive|
|06.02.2018||India to Regulate Cryptocurrencies by March 31st ||Downturn||Negative|
|07.02.2018||US Senate cryptocurrency hearing ||Correction (growth)||Positive|
|08.02.2018||The EU regulator called cryptocurrencies one of
its priorities for this year||Correction (growth)||Positive|
|09.02.2018||SEC attributed the counteraction to fraud in the
crypto and ICO market to the priorities of 2018 ||Correction (growth)||Positive|
|10.02.2018||Crypto Investors Face Tax of Up to 55% in Japan||Correction (growth)||Negative|
|10.02.2018||Hong Kong Orders Exchanges to Delist Securities
Tokens ||Correction (growth)||Negative|
|12.02.2018||The Central Bank of Thailand banned operations
related to crypto trading ||Correction (growth)||Positive|
|12.02.2018||EU regulators warned consumers against buying
cryptocurrencies ||Correction (growth)||Negative|
|12.02.2018||The Chinese financial association will strengthen
supervision over cryptocurrencies and ICO ||Correction (growth)||Negative|
|13.02.2018||Coinbase, CryptoCompare, and BlockEx created
the self-regulation body (CryptoUK) ||Correction (growth)||Negative|
|14.02.2018||The Ministry of Finance of the United States called for strict international regulation of the
|16.02.2018||SEC Suspends Trading of Three Companies With
Ties to Cryptocurrency||Correction (growth)||Positive|
|16.02.2018||The Swiss regulator published guidelines for ICO ||Correction (growth)||Positive|
|17.02.2018||The Japanese authorities will conduct a
face-to-face check of 15 unlicensed crypto
|19.02.2018||Australia’s Consumer Watchdog Received 1289
Crypto Complaints in 2017 ||Correction (growth)||Positive|
|20.02.2018||Venezuela launches its own cryptocurrency||Correction (growth)||Negative|
|21.02.2018||The Snapchat messenger has joined the ban on
ICO advertising||Correction (growth)||Negative|
|22.02.2018||France’s AMF says digital advertising of CFDs on
cryptocurrencies is prohibited under Sapin 2 law||Downturn||Negative|
|23.02.2018||Austria intends to regulate bitcoin like gold or
|24.02.2018||US Senate will be offered to cancel or revise
|26.02.2018||Korea Informed FATF on Measures to combat
money laundering through cryptocurrency ||Downturn||Negative|
|26.02.2018||The European Commission is preparing an action
plan to prevent financial crimes using
|26.02.2018||The state of Georgia is going to legalize the
payment of taxes with cryptocurrencies ||Downturn||Negative|
|27.02.2018||Krungthai Bank (after Bangkok Bank) stopped
operations with cryptocurrencies in Thailand ||Downturn||Positive|
|27.02.2018||Japan's Finance Watchdog Eyeing ICO
|27.02.2018||Israeli Supreme Court Prohibits Banks From
Restricting Crypto Activity In Landmark Decision||Downturn||Positive|
|28.02.2018||CFTC employees were allowed to invest in
|Date||News||The actual situation on the market||Impact on the market|
|01.03.2018||The SEC began a large-scale inspection
projects-the organizers of the ICO ||Downturn||Negative|
|02.03.2018||A number of the world's largest crypto exchanges
have reduced the size of commissions for the
withdrawal of bitcoins due to the growing
popularity of the SegWit protocol, that already
covers 30% of the total volume of BTC
|02.03.2018||Bitcoin was recognized as legal tender in Germany||Downturn||Negative|
|03.03.2018||The SEC sent out summons to at least 80 crypto
|04.03.2018||Mexican Congress passed a bill legalizing
operations with virtual assets ||Downturn||Positive|
|05.03.2018||Two collective lawsuits have been filed against the
Coinbase exchange ||Downturn||Positive|
|07.03.2018||FinCEN: Money Transmitter Rules Apply to ICOs||Downturn||Positive|
|07.03.2018||Cryptocurrencies Are Commodities, Says Federal
|07.03.2018||US Marshals Service announced that it will sale
2170 BTC ||Downturn||Negative|
|08.03.2018||A number of Japanese crypto exchanges withdraw
their applications for registration in FSA ||Downturn||Positive|
|08.03.2018||Cryptocurrency Exchanges Supporting Security
Tokens Must Register With SEC Or Seek
|08.03.2018||Binance hacking ||Downturn||Negative|
|13.03.2018||SEC of Thailand finishes preparation of legislative
base for regulating the crypto industry ||Downturn||Positive|
|13.03.2018||China IT Ministry to Create Official Blockchain
|14.03.2018||Authorities of Cambodia banned banks from
participating in cryptocurrency transactions ||Downturn||Positive|
|14.03.2018||Google will ban all cryptocurrency-related
|15.03.2018||The SEC sent requests and summons to
cryptocurrency hedge funds ||Downturn||Negative|
|15.03.2018||Organizers of ICO Bananacoin were prosecuted in
|16.03.2018||The financial regulator of France blacklisted 15
crypto investment companies ||Downturn||Negative|
|16.03.2018||Yandex banned cryptocurrency and ICO
|19.03.2018||G20 regulator: cryptocurrencies do not threaten
the world’s financial stability ||Correction (growth)||Negative|
|19.03.2018||Israel Securities Authority bans cryptocurrency
companies from TASE indices ||Correction (growth)||Neutral|
|20.03.2018||First Deputy Chairman of the Bank of Russia
Ksenia Yudaeva noted that crypto assets do not
threaten financial stability of the country's
economy ||Correction (growth)||Positive|
|21.03.2018||Financial leaders of G20 postpone the problem of
cryptocurrency regulation||Correction (growth)||Negative|
|22.03.2018||South Korea will conduct a second wave of
checks on the implementation of AML rules by
banks related to the crypto trading ||Correction (growth)||Negative|
|23.03.2018||SEC wants to apply principles of stock markets to
crypto regulation ||Downturn ||Negative|
|25.03.2018||The standard of crypto accounting is adopted in
Belarus ||Downturn ||Negative|
|27.03.2018||Massachusetts Regulator Halts Five Firms’
‘Unregistered’ ICO Sales ||Downturn ||Negative|
|27.03.2018||Israel Interim Report on Cryptocurrency: Not
Considered to be Securities ||Downturn ||Negative|
|27.03.2018||The EU regulator tightened its position regarding
cryptocurrency derivatives||Downturn ||Negative|
|28.03.2018||The Russian Association of Crypto-Currency and
Block-Finish (RACIB) and industry associations in
Korea and China are planning to sue Google,
Twitter, Facebook and Yandex for refusing to
place cryptocurrency advertising||Downturn ||Negative|
|28.03.2018||Twitter banned cryptocurrency and ICO
advertising ||Downturn ||Negative|
|29.03.2018||China's Central Bank Eyes Crypto as Possible
Yuan Risk ||Downturn ||Negative|
|30.03.2018||Thailand Approves Draft Decree on Crypto||Downturn ||Negative|
|31.03.2018||Kazakhstan Preparing to Prohibit Crypto Trading
and Mining ||Downturn ||Negative|
Negative news from the financial regulators about tightening requirements for exchanges and ICO rules, restrictions on central banks to conduct banking operations with cryptocurrencies, the release of the crypto exchange reserves of the Mt. Gox in the amount of $ 407 million, and advertising ban in major search engines and social networks have prevailed in Q1 2018.
Analysis of the ICO market, Q1 2018
549 ICOs have been conducted during the first quarter of 2018, 269 (49.1%) of which are active at the moment, 271 (50%) failed to collect softcap, another 4 (0.9%) are in Lost category: these are projects that do not have a running website, or projects whose leaders were prosecuted or are now under investigation on fraudulent activities. The total amount of funds for Q1 2018 was $ 4,865,918,893, $ 10,726,704 of which are lost. $ 1.96 billion were raised in January. In terms of volumes, this is comparable to December 2017, that was the most successful time for ICO projects. The funds raised in January are 40.2% of total amount collected during the first quarter of 2018. In February 2018, the amount of funds was $ 1.82 billion (37.4%). $ 1.08 billion were raised in March and accounted for only 22.3% of the total amount raised in Q1 2018. If we include the funds of ongoing ICO (TON, EOS and El Petro), then the amount raised during the first quarter will be $ 8,114 billion, that exceeds the amount of all collected funds from 2014 to 2017 inclusive.
The number of conducted ICO, Q1 2018
|Index||January ||February ||March ||Total, Q1 2018|
|Number of ICOs *,
EOS and El Petro||189||162||198 ||549|
TON, EOS и El
Petro) ||109 ||90||72||269|
|Failed ||80 ||71||123 ||271|
The amount of funds raised during the ICO, Q1 2018 ($ billion)
|Index||January||February||March ||Total, Q1 2018|
TON, EOS and El
Petro ||1,960||1,819||4,335 ||8,114|
TON, EOS and El
Petro) ||1,960 ||1,819 ||4,325 ||8,104|
|Failed||N/D ||N/D ||N/D||N/D|
|Lost||0||0||0,01 ||0,01 |
More than 70% of funds raised during the entire 2017 were collected in the first quarter of 2018 (excluding ICO TON, EOS, El Petro). This indicates a successful beginning of the year for ICO, despite a significant decrease in trading volumes of cryptocurrencies, a 60% decrease in the capitalization of the crypto market, a ban on ICO in South Korea and the PRC, tightening of the requirements for the operation of crypto platforms, implementation of users verification under the KYC procedure, the beginning of a large-scale SEC investigation on the ICO field, as well as the prevailing negative information background from early January to mid-March 2018.
Top 10 ICO categories by the amount of collected funds
Leading categories on the amount of funds raised by projects during ICO are: "Communication" ($ 1,820 million) - the category was included in the list of leaders due to the inclusion of the Telegram Open Network project (TON), which is also an infrastructure project raised $ 1.7 billion during two closed pre-sale rounds, that is still a record for fundraising during the ICO (leaving aside statements of the President of Venezuela, Nicolas Maduro, who claims that more than $ 5 billion was collected during the initial offering of El Petro coins, but the actual confirmation is unavailable). The share of collected funds by TON in the "Communication" category is 96%, that demonstrates the insignificant contribution of other projects to this category.
The Current project ($ 36 million), the amount of raised funds of which is 47 times less than the TON’s, is the closest to TON in its category. The second place in terms of the collected sums is the “Blockchain / Infrastructure / Services” category, in which the top 5 projects collected $ 926.6 million. The leader in this category is EOS, which has already collected about $ 700 million. Its crowdsale is divided into 350 rounds lasting for 23 hours (as of April 6, 2013, there are 292 rounds). Next comes the "Finance" category mainly presenting banking products for institutional investors, the top-5 projects from this category have collected $ 599.5 million. The leader of the category is the Dragon project collected $ 320 million, that is 55% of all funds in this category. Next are the "Payment Systems / Wallets", "Machine Learning / Artificial Intelligence", and "Transport / Real Estate / Energy" categories with total collections sums of $ 159.9 million, $ 147.2 million, and $ 141.6 million respectively. The list of categories in which the top 5 projects managed to collect more than $ 100 million is completed by the "Trading / Investments" category with collected funds of $ 126.9 million.
Comparative diagram of collected funds by top-5 and total by category
Top-5 ICO projects by categories ($ million)
|Category ||Top-1 ||Top-2 ||Top-3 ||Top-4 ||Top-5 |
|Medicine; Insurance ||MedicalChain
*The TON project is also an infrastructure project, but in order to avoid duplication of indicators it was decided to classify it in "Communication" category.
Platforms for working with smart contracts, decentralized apps, interblockchain solutions, and payment processing systems were the most interesting for investors In Q1 2018. Although one of the most successful projects in the first quarter is the Telegram Open Network, other ICOs of large companies, that have not yet announced their entry into blockchain technology, are expected in Q2 and Q3.
Top 5 countries of ICO origin
The map shows the distribution density of ICO projects in terms of geographic location and
countries of origin.
*Information provided by icowatchlist.com
Almost a fifth of all ICOs are located in the United States (17.61%), ICO projects from the UK (10.61%) and the Russian Federation (8.71%) take the second and third place. 6.82% of the total number of ICO projects are registered in Switzerland, which takes the 4th place. The top-5 list is closed by Singapore with 6.63%. About 50% of all ICOs, that were conducted in Q1 2018, were registered in the top five countries.
Top 10 ICO projects by the amount of raised for all time funds
|Project name ||Ticker||Raised, $ million|
|Telegram ICO ||GRAM ||1700|
|Huobi token ||HT||300|
|The DAO ||DAO||168|
|Sirin Labs ||SRN||157,9|
|Raised in total by top 10, $ million ||4244,4|
|Raised in total for all time, $ million ||11865,8|
|The share of the top 10 in the total amount of
|The share of TON in the total amount of funds
raised by top 10 ||40,05%|
*El Petro does not appear in the top 10 as the amount of raised funds is not confirmed.
The most successful project in terms of raised funds is the Telegram Open Network (TON) project, which collected $ 1,700 million during two closed rounds. Raised funds by TON is about 40.05% of all funds raised by top-10 projects. Such success has not yet been repeated by anyone. The closest projects in terms of raised funds are: the EOS infrastructure project, which has already collected about $ 700 million; the Dragon project ($ 320 million) for optimization of financial calculations in gambling; the HuobiToken ($ 300 million) offering banking solutions for institutional investors. The list of five largest projects is closed by Hdac from the Hyundai team with a blockchain solution in the Internet of things field, which collected $ 258 million.
Large investors are focused mainly on infrastructure projects that will serve as the basis for future decentralized applications. A total of $ 4.24 billion was collected by the top 10 projects, that is more than the third part (35.77%) of the funds raised during the ICO for the whole time.
Top-5 projects by the amount of collected funds, Q1
|Project name||Ticker||Raised, $ million|
|Telegram ICO ||GRAM ||1700|
|EOS ||EOS ||700|
|Huobi token ||HT||300|
|Raised in total by top-5||3171|
|Raised in total, Q1 2018 (including TON, EOS,
El Petro*) ||8114|
|The share of the top 5 in the total amount of
funds raised during the Q1 of 2018 ||43,65%|
|The share of TON in the funds raised by the
*El Petro does not appear in the top 5 as the amount of raised funds is not confirmed.
Five major projects has collected $ 3.17 billion in total for Q1 2018, 53% of these funds ($ 1.7 billion) were collected by the TON project. The second place is taken by infrastructure EOS project collected about $ 700 million, crowdsale of which is divided into 350 rounds. The third place is taken by the Dragon project representing a new cryptocurrency in the casino and gambling ($ 320 million). The list of financial projects aimed at institutional investors is closed by HuobiToken and Bankera, that raised $ 300 million and $ 151 million respectively.
549 ICOs has raised $ 8.114 billion during Q1 2018, while the share of the top 5 in the total amount of funds is 39.1% ($ 3.171 billion). The market is still asymmetric, and the figures show, that there are large ICOs that occupy a significant part of the overall market. Thus, 1% of ICO projects account for almost half of all attracted funds. The ICO market continues to grow, and more often the majority of tokens are sold during pre-sales and private sales. This is achieved by projects that already have existing products. The ICO market is becoming more like a traditional VC market, where most of the funds come from large investors.
Top-5 LOST projects are known to be scam in Q1 2018
The most notorious scam projects in Q1 2018 are AriseBank ($ 600 million), Centra ($ 32 million), Denaro ($ 8.8 million), LoopX ($ 4.5 million), Benebit ($ 2.7-4 million).
- AriseBank — $ 600 million was raised, investors returned their funds thanks to SEC’s decision to freeze the assets of AriseBank's founders Jared Rice and Stanley Ford.
- Centra — $ 32 million was collected, the SEC detained the founders Sohrab Sharma and Robert Farkas on charges of raising funds by selling unregistered securities and cheating investors, then the rate of the CTR token collapsed three-fold.
- Denaro — «exit scam»: $ 8.8 million was raised, there are reports from unconfirmed sources that the project team disappeared a week before the end of the crowdsale with all raised funds.
- LoopX — «exit scam»: $ 4.5 million was raised, the LoopX project has completely disappeared from the Internet at the moment. The company's website is not working, and profiles on social media, including Facebook, Twitter, YouTube, and Telegram, have been deleted.
- Benebit — «exit scam»: from $ 2.7 to $ 4 million was collected, according to various estimates. The project site and its accounts on social networks stopped working after the completion of ICO. The telegram of the project is still working. Channel’s administrators consider themselves as victims of scammers allegedly located in India. Many channel users complain about their financial losses.
Many startups cannot fulfill their obligations and go bankrupt. This fact raises the attention of government regulators and tightens the entire ICO procedure.
The results of Q1 2018 demonstrate that the current ICO market is directed towards transparent regulation and control: there are a number of escrow services, projects on hedging and insurance of risks are being developed, standards and systems for project evaluation are being improved, an international regulatory and legal framework is developing. The market moves from non-transparent and fraudulent schemes to platform solutions and open dialogue with investors, developers and insurance companies.
DigRate: reviews and reports on the evaluation of investment attractiveness
23 ICO projects were analyzed, DigRate rating score was assigned to 4 projects over just three months of 2018.
The list of ICO projects with investment attractiveness score, Q1 2018
|Name ||Rating||Quality Rate||Short description|
|All.me||А1 ||High||a social network on blockchain, that combines bitcoin
advantages and enables users to receive rewards|
|BeEasy ||A2||High||a platform that represents a single ecosystem of interconnected services for working with cryptocurrency (mining, fund, exchange, charity, receiving goods and services from project partners, withdrawal in fiat, etc.)|
|Scorum||В1||High||sports media resource with blockchain integration |
the project plans to create a blockchain-based transport platform. Decentralization and autonomy of transport are the main principles of DAV
Rate ||Short description|
|Eticket4 ||5.6/7.0 ||High||blockchain-based platform for purchase and sale of tickets
in the secondary market|
|DeHedge ||5.1/7.0 ||High||the project intends to develop and implement hedging
instruments in the ICO and crypto market|
|Morpheus Labs ||5.2/7.0||Medium||the platform will allow organizations of any size at all stages
to use blockchain system with minimal time and financial
costs. The platform will support a number of technologies,
including Ethereum, NEM, Hyperledger Fabric, Multichain
with further expansion|
|EdenChain ||4.6 / 7.0||Medium||South Korean blockchain platform trading all types of assets
using Economy Platform programmable technology|
|Thrive ||5.8 / 7.0||High||the company is developing a data management platform
(DMP), that has a great potential for application in
advertising marketing. The goal of the project is to create a
decentralized platform that will take into account the
reputation of the user when calculating bonuses|
|BitGuild ||5.2 / 7.0||High||a decentralized blockchain gaming platform. Games on the
BitGuild platform will use the smart contracts technology,
accept the PLAT project token and provide tokenized game
items that will belong to the player and can be put up for sale
after the acquisition|
|TheWorldNews ||5.1 / 7.0||Medium||the project positions itself as the first anti-fake news
platform where a bot collects worldwide news|
|Datarius ||5.0 / 7.0||High||a new type of social cryptobank with transparent conditions
that will function on the basis of a P2P ecosystem where
transactions participants are private users, not banking
|JURY.ONLINE||5.0 / 7.0||High||here users can make deals, that in case of claims are
considered by a group of independent expert judges who
announce the final verdict in favor of one of the parties.
JURY.ONLINE also provides specialists from various fields
with the opportunity to apply their knowledge and experience
in practice participating in the resolution of disputes for a fee|
|Ethearnal ||5.4 / 7.0||High||an independent P2P platform that connects employers and
freelancers and allows to conclude employment contracts on
the basis of a smart contract (using an escrow).
Decentralized system of moderators will be used in case of
disputes between the platform participants. Ethearnal
combines reputation and economic initiatives tokenizing the
reputation and giving it value|
|Solve.Care ||5.3 / 7.0||Medium||a platform created to decentralize and fully rethink the
management of health programs on a global scale.
Solve.Care will allow direct interaction between consumers
and providers of medical services, insurers and public
|ViMarket ||4.8 / 7.0||Medium||a platform that combines a trading platform and tools for
working with virtual and augmented reality, where sellers
can create virtual versions of their goods, and users will be
able to create 3D copies of their rooms and see how the
goods the like will look in their interior|
|Izetex ||5.1 / 7.0||High||blockchain platform for effective communication between
sellers of goods (services), their consumers and game
developers of augmented and virtual reality. The project's
founders intend to create a new niche in the digital
advertising market encouraging developers to integrate their
applications with the decentralized IZX marketing platform|
|Parsec Frontiers||4.3 / 7.0||Medium||the project team plans to develop a multiplayer online game
about the colonization of the planets of the Milky Way. Users
will be able to extract and use rare metals, create modern
ships and defense systems, buy resources and trade for
profit due to the presence of a fully managed blockchain
|The Abyss ||4.8 / 7.0||High||a decentralized digital distribution platform that will allow
developers to cut marketing costs, share traffic and gain
access to additional services. Players will be able to play
their favorite games and earn by participating in referral and
motivational programs, in auctions of game items, and in the
creation of game content, as well as in other social activities|
|SERENITY ||5.0 / 7.0||High||the platform is a marketplace for traders and brokers,
implemented on blockchain. Crypto traders get the
opportunity to invest in classical assets keeping a deposit
and making a profit in cryptocurrencies|
|Coinvest ||-||High||the goal of the project is to create a decentralized stock market for cryptocurrencies. The team plans to create a platform where users can invest in cryptocurrencies and create different investment portfolios using COIN token|
The experts of the first professional agency for the evaluation of digital assets DigRate made the following changes as of 01.04.2018 as the results of revision of investment attractiveness evaluations and the quality of projects for Q1 2018:
- BitGuild: the average score was increased from 5.1 to 5.2, the Quality Rate was changed from Medium to High due to an independent safety audit of the smart contract and a significant increase in marketing activity.
- Izetex: The Quality Rate has been lowered from the High to Medium due to the shift in timing and roadmap changes.
- EXMO: the Quality Rate has been lowered from High to Medium due to ICO reschedule for September 2018 (there was a shift from February to May 2018 earlier) and the negative information background about the absence of positive decisions on registering the EXMO Coin by the SEC, the European Securities Commission, the Swiss Financial Market Supervision Service, the Singapore Monetary Authority, and the Financial Services Authority of Japan.
- LWF: The Quality Rate has been lowered from the High to Medium due to the shift in timing and roadmap changes.
- Nitro: The Quality Rate has been lowered from High to Medium due to a lack of activity in marketing support of the token.
The cryptocurrency market has experienced a deep correction during Q1 2018, followed by a sharp increase at the end of 2017. The main events affecting the cryptocurrency market were tightening of regulators' requirements for crypto exchanges and ICO, limitation of central banks for conducting banking operations with cryptocurrency, the release of the Mt. Gox’s reserves, and advertising ban in major search engines and social networks. The results of the quarter demonstrate that the current ICO market is moving from non-transparent and fraudulent schemes to platform solutions and open dialogue with investors, developers, and insurance companies. The market continues to develop and grow, despite all the changes that have taken place in recent months, becoming more like a traditional VC market, where most of the funds come from large investors at pre-sales and private sales. Now investors' interest is focused mainly on infrastructure projects, that will be a basis for future decentralized apps. The return on investment in the ICO will decrease slightly in the future, (compared to 2017), but it will continue to be higher than in the stock market, while the growth of the overall market capitalization will be achieved due to investments of large players from traditional markets.