Categories: Business

ICOs Rake In $160 Million In First Half Of January

With the first half of January already done, the numbers show that ICOs had been more successful than anticipated, raising around $160 million. The interesting fact is that the ICOs that were completed by 15th January raised 33 percent of the amount that it managed to accumulate in December 2018. According to recent reports, almost half of the sum has been raised by one project in the first half of January.

IMAGE: MASHABLE

Surprising Success Of ICOs

The combined hard cap in January, which is the maximum amount of money that can be secured from ICO investors—has eclipsed $4 billion. Data shows that three of the biggest fundraisers nearly reached their hard cap this month. Market experts believe that although there has been a more cautious approach from the investors, the market will be slightly on the upside as the year progresses.

Moreover, there will be more than 150 fundraisers in January. Investors who want to get the best insights into these new coins can start their analysis by using crypto robot applications like Bitcoin Trader, giving them an edge when it comes to choosing promising tokens to invest in.

Declining Investor Interest

On the one hand, the massive earnings of ICOs in the first half of January makes it seem like they’re back on track to becoming compelling investment channels. On the other hand, reports indicate that investors continue to show a decline in interest in ICOs. After the tumultuous ride of countless ICOs over the past two years, investors have become more careful about where to put their money.

One of the reasons why there has been a dent in the popularity of ICO listings is the increased number of scams that have been taking place in the last couple of years. Most importantly, the government regulations in different countries have restricted the use of ICOs to a great extent. This has resulted in the loss of 54 percent of the initial value of $24 billion worth of tokens. Some ICO teams used to make money out of the advanced payments from investors, and they claimed that the coins will provide high returns in the future. In most cases, however, these claims didn’t live up to the hype. Multiple scams caused investors to lose their hard-earned money.

Governments have become stricter when it comes to ICOs, and even the investors have become aware of the false propositions. That is why there has been a paradigm shift from ICOs to STOs because they are a lot more reliable than their earlier counterpart. Since the entire cryptocurrency market is observing a silent change for the better, the shift from ICO to STO was a long time coming. So, even though the market is on the higher side with the first half of January recording a massive $160 million, the change has been because of the investors’ newfound cautious approach. Most of the successful ICOs this year have shown promising real-world use cases, thus earning the trust of investors.

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