Cryptocurrency and ICO market Q1 2018 results | Digital Rating Agency

Cryptocurrency and ICO market Q1 2018 results

13.04.2018

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:


January 2018

Date
News

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 grow
Negative
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 fall 
Positive
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 disrupter
Downturn 
Negative
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 Exchanges
Downturn
Negative
30.01.2018
Philippines Authorities to Issue Cryptocurrency Regulations in 2018
Downturn
Negative
31.01.2018
Facebook is banning cryptocurrency and ICO ads
Downturn
Negative
31.01.2018
Arbitration Manager of Mt. Gox sold 6,000 bitcoins 
Downturn
Negative


February 2018

Date
News

The actual situation on the market

Impact on the market

01.02.2018
US Court Freezes BitConnect Assets as Lawsuits Mount
Downturn
Neutral
02.02.2018 
Japan’s regulator raids Coincheck exchange
Downturn
Positive
02.02.2018 

Supply of USDT Increases Significantly Following December 6th Subpoena 

Downturn
Negative
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 Cryptocurrency
Correction (growth)
Negative
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 exchanges
Correction (growth)
Negative
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 derivatives 
Downturn
Negative
24.02.2018
US Senate will be offered to cancel or revise BitLicense 
Downturn
Negative
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 cryptocurrency 
Downturn
Positive
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 Regulation 
Downturn
Negative
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 cryptocurrency 
Downturn
Positive


March 2018

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 transactions 
Downturn
Negative
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 companies 
Downturn
Positive
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 Judge 
Downturn
Positive
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 Exemption 
Downturn
Negative
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 Standards 
Downturn
Positive
14.03.2018
Authorities of Cambodia banned banks from participating in cryptocurrency transactions 
Downturn
Positive
14.03.2018
Google will ban all cryptocurrency-related advertising 
Downturn
Negative
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 Russia 
Downturn
Negative
16.03.2018
The financial regulator of France blacklisted 15 crypto investment companies 
Downturn
Negative
16.03.2018
Yandex banned cryptocurrency and ICO advertising 
Downturn
Negative
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 *, including TON, EOS and El Petro
189
162
198 
549
Active (including TON, EOS и El Petro) 
109 
90
72269
Failed 
80 
71123 
271
Lost 
0134


The amount of funds raised during the ICO, Q1 2018 ($ billion)


Index
January
February
March 
Total, Q1 2018
Raised during ICO*, including. TON, EOS and El Petro 
1,960
1,819
4,335 
8,114
Active (including TON, EOS and El Petro) 
1,960 
1,819 
4,325 
8,104
Failed
N/D 
N/D 
N/D
N/D
Lost000,01 
0,01 

* ICOs TON ($ 1.7 billion), EOS ($ 0.7 billion) and El Petro ($ 0.85 billion, but the exact amount is unknown) also participate in calculations of “Number of ICOs” and “Raised during ICO” indices for the first quarter. Although TON and EOS are not yet completed, and the amount of funds raised by ICO El Petro has not been confirmed, the projects have a significant impact on the ICO market indices in Q1 2018.

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.



*Information provided by ICO GLOBAL MARKET STATScoinschedule.com, icodrops.com


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



*Information provided by ICO GLOBAL MARKET STATS, coinschedule.com, icodrops.com 


Top-5 ICO projects by categories ($ million)


Category 
Top-1 
Top-2 
Top-3 
Top-4 
Top-5 
Communication 
Telegram* ($1700)
Current ($36)
Narrative network ($14,6)
Sapien Network ($11,7)
Pareto ($10)
Blockchain infrastructure; Blockchain services
EOS ($700)
Elastos ($94)
Odyssey ($47,66)
ArcBlock ($45)
YGGDRASH ($40)
Finance 
Dragon ($320)
Bankera ($150,9)
Celsius ($50)
Hero Token ($36,4)
Fusion ($42,2)
Payment systems; Wallets
FuzeX ($36,2)
Pundi X ($35)
Open Platform ($30)
Havven ($30)
TokenPay ($28,7)
Machine learning; Artificial Intelligence
Endor ($45)
Consensus AI ($40)
Faceter ($28,6)
Banca ($20)
Effect.ai ($13,6)
Transport; Real estate; Power Engineering
WePower ($40)
Restart Energy ($30)
Electrify.asia ($29,1)
Rentberry ($27,5)
BeeToken ($15)
Security; Storage; Date verification
PolySwarm ($25,9)
Thekey.vip ($22)
Dock.io ($20,1)
Bluzelle ($19,5)
REMME ($17,5)
Commerce; Advertising
Jet8 ($32,7)
MAD Network ($25)
AdHive ($17,5)
Friendz ($13,7)
Thrive ($3,9)
VR; Gaming
Refereum ($32,2)
Play2Live ($30)
Gameflip ($16,1)
Cappasity ($5,1)
EtherSrortz ($3,5)
Medicine; Insurance 
MedicalChain ($23,9)
PolicyPal ($20,5)
AidCoin ($18,6)

Lympo ($16,8)

Solve.Care ($2,3)

*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
EOS
EOS
700
Dragon 
DRG320
Huobi token 
HT300
Hdac 
DAC258
Filecoin 
FIL257
Tezos 
XTZ230,5
The DAO 
DAO168
Sirin Labs 
SRN157,9
Bancor
BNT153
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 funds

35,77%
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
Dragon 
DRG320
Huobi token 
HT300
Bankera
BNK151
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 top-5 

53,61%

*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).


  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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 
Higha 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 
Dav Network
A2
High

the project plans to create a blockchain-based transport platform. Decentralization and autonomy of transport are the main principles of DAV


List of ICO projects with express reviews, Q1 2018


Name
Average score
Quality 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 institutions
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 medical institutions
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 economy
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:

  1. 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.

  2. Izetex: The Quality Rate has been lowered from the High to Medium due to the shift in timing and roadmap changes.

  3. 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. 

  4. LWF: The Quality Rate has been lowered from the High to Medium due to the shift in timing and roadmap changes.

  5. Nitro: The Quality Rate has been lowered from High to Medium due to a lack of activity in marketing support of the token.


    CONCLUSIONS


    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.