ICO Market Research Q3 2018

Transcription

1 1 ICO Market Research Q3 218 Primary Contact: Anastasia Blake Chief Business Development Officer The Rating Agency for the ICO Market icorating icorating ico_rating

2 2 About the Company ICORating is the global market leader for independent, nonaffiliated analytical research on ICO projects, conducting detailed evaluations and assigning them investment ratings. 5+ in-house analysts 8+ crypto funds 5 reviewed or rated projects $2B+ collective AUM of the crypto funds Our main aim is to create transparency in the market, and to provide investors with the tools they need to make informed, evidence-based decisions in order to bridge capital and transparent ICOs. Our team members have an average of 6 years experience with companies including hedge funds, large investment banks, major consulting groups, and venture funds. Two years of ICO market analysis, combined with this diverse set of skills and experience, has enabled us to develop a unique multidisciplinary approach. We have evaluated over 5 ICO projects for both private and institutional clients since we started doing business in September 216. Over 8 crypto-focused funds regularly receive our weekly newsletter featuring ICO projects that we have analyzed. These funds rely on our analyses to decide which ICO projects are worthy of being passed on to their in-house analysts for a closer look. Our detailed, unbiased reports evaluate ICO-project technical elements, business models, and tokenomics, teams, and other critical factors.

3 3 Welcome Message Q3 218 was not as successful as Q2 and Q1 of 218 for ICOs. Regardless of the high risks inherent in ICO investing, many fraudulent projects and an overall bearish trend in the market, investments continued. In Q3 218 we can see several interconnected ICO trends which we expect to continue and develop. These are: Overall disappointment in traditional ICOs Security token offerings Development of regulation A fall in the value of strongly-hyped and highly backed projects of 217 and early 218. The market in Q3 shows signs of overall disappointment in traditional ICOs as a means of venture financing. This has multiple reasons behind it a significant drop in returns for ICO participants, an increasing lack of transparency from ICO teams/projects, an overall market downtrend, the fact that investors became more experienced and prudent in their decisions, regulation activities, a lack of new ideas from project teams and not-so-fast pace of actual blockchain implementation in the traditional market. The key problem with ICOs is that a vast number of them are scams or scam-like projects, and the fact that some tokens sold were actually securities, meaning that they violate U.S securities law, forcing the Securities and Exchange Commission (SEC) to take action. In July 217 the SEC published a report stating that most, if not all tokens should be classified as securities, and thus are subject to the relevant regulation. Their later actions commencing in February 218 and continuing in Q2 and Q3 led to an increase in interest in security token offerings (STOs).

4 4 Welcome Message STOs provide a smarter way of investing and raising finance as compared to traditional ICOs because they address issues of lack of transparency, unknown territory for regulation and a lack of regulation itself. In addition to this, STOs in theory may provide projects access to a significantly larger number of potential investors due to implied regulation. While STOs currently have a tiny share in the crypto market, we expect that this will be a quickly growing segment in Q and onwards. Apart from the above, due to unsatisfactory market performance and stricter regulation, combined with the fact that many projects between 217 and early 218 have major technical milestones in the upcoming months of 218 and 219, we expect some strongly hyped projects which raised significant funding to actually fail for a variety of reasons due to being compromised as scams, to conflicts between founders, failure to deliver the promised technology or a failure of solutions offered to be widely adopted. Sasha Kamshilov, Chief Executive Officer

5 5 Table of Contents ICO market review Tokens and products Industry review of ICO campaigns ICO geography Post-ICO performance Token sale structure Private Token Sale and Blockchain VC 58 69

6 6 Review of Q3 $1,819,585,9 is the total funding amount raised by 597 projects over the quarter, compared to the $8,359,976,282 collected in the 2nd quarter of % of ICO projects announced in Q3 218 were not able to raise more than 1, USD. Only 4% of all announced ICOs were listed on exchanges. The fall was 48% In the quarter from July to September alone, the fall in funding raised via ICOs was 48%. Funding raised in September fell by more than 78% compared with May.

7 7 Review of Q3 Service +6.55%, Utility 1.7% Compared to Q2, the number of projects offering service tokens increased by 6.55%. The number of projects with utility tokens decreased by 1.7% % of projects had nothing but an idea 76.15% of all the projects in Q3 had nothing but an idea before launching an ICO. Compared with Q2, the number of projects aiming to attract funds at the idea stage increased by 18.72%. Financial services are the most popular Following Q2 and Q3 trends, the most popular industry with the largest number of projects was financial services.

8 8 Review of Q3 Europe In the second quarter of 218, the majority of projects were based in Europe, which was the origin for 43% of all projects. The median return 22% According to results from the 3rd quarter of 218, the median return from tokens was 22%. According to results from the 3rd quarter of 218, the median return from tokens after three days of being listed is 3.35%. 79% of tokens were traded below the ICO price. 67% of all Dapps ICOs were not successful About 87% of projects staged their ICOs with the intention of creating a Dapp on a third-party blockchain. 67% of all Dapps ICOs were not successful.

9 9 ICO Market Review

10 1 Main Figures for ICOs 57% of ICO projects announced in Q3 218 were not able to raise more than 1, USD. Only 4% of all announced ICOs were listed on exchanges (in Q2, only 7% of completed ICOs were able to be listed on exchanges). It is worth mentioning that 19% of projects with previously announced ICOs have already deleted their social network accounts and websites this quarter (9% in 2Q 218). In total, these projects attracted $62,193,795 for the quarter (3% of total funds raised for the quarter). It took 18 days on average from the completion of an ICO to the vesting of tokens for secondary trading. 597 ICOs were staged were in Q of them raised more than $1, able to be listed on exchanges

11 11 Number of Successful Projects and Their Funding HOW TO READ THE GRAPH The graph shows the relationship of total project funding during ICOs by month to the number of successful * projects by month. The left axis indicates the total funding for projects for the period (month); the right axis indicates the number of successful projects for the period. In the quarter from July to September alone, the fall in funding raised via ICOs was 48%. Funding raised in September fell by more than 78% compared with May. * A project is considered successful if its soft cap was reached, or the project raised more than $5, if there was no soft cap. $2 B 15 $1.5 B 1 $1 B 5 $.5 B Total funding for projects Successfully completed projects Jan Feb Mar Apr May Jun Jul Aug Sep

12 12 Overall ICO Funding Amount HOW TO READ THE GRAPH The graph shows the distribution of ICO campaigns by the amount of funds raised. Projects that collected less than $.5 million attracted a total of $6,689,924. Funds raised $5 1 M $25 5 M 64% of all ICOs failed to complete their crowdfunding. In Q3, projects fell mostly into two groups by amount raised: $1-5 million (13%) or $1-25 million (9%). $1 25 M $5 1 M $1 5 M $.5 1 M $.5 M Number of projects

13 13 Top 2 ICO Campaigns with The Largest Amount of Funds Project GOToken NEX HOW TO READ THE GRAPH The chart shows the amount of investment attracted by the top 2 ICO campaigns for Q3 of 218. Tutellus FLOGmall Usechain The average amount of funding attracted by the top Q3 ICO projects is 33 million USD. Liquidity.Network Atlantis Blue Digital BitForex The Deal Coin ICO TravelBlock Essentia GRAPEVINE WORLD Origo Network Synco GENEXI Sparkster 4NEW Alchemy Cryptosolartech London Football Exchange Raised funds 2 M 4 M 6 M 7 M

14 14 1 Largest ICOs in Terms of Funds Raised, Q1-Q3 218 HOW TO READ THE GRAPH The projects shown in this chart raised more than 7 million USD over Q1-Q Two of them (EOS and Telegram) are ICO unicorns. * * Projects that have raised over 1 billion US dollars. Project London Football Exchange Flashmoni Envion PumaPay Orbs Bankera Huobi Tatatu Telegram EOS Funds raised $1 B $2 B $3 B $4 B

15 15 HOW TO READ THE GRAPH Raised funds $8 M Amounts and Rates of Funding for ICO Campaigns The graph shows the relation between funds raised during ICOs, and the duration of campaigns for the top 2 ICOs by the amount of funds raised. The Y-axis indicates ICO funding in USD, and the X-axis indicates the ICO duration in days. Only one project, Usechain, managed to attract all its funding in the course of one day. The average fundraising period was 41 days. Cryptosolartech $6 M London Football Exchange Alchemy 4NEW $4 M Sparkster GENEXI $2 M Origo Network Synco Usechain BitForex NEX Essentia GRAPEVINE WORLD TravelBlock Liquidity.Network The Deal Coin ICO GOToken Atlantis Blue Digital FLOGmall Tutellus 41 days period ICO duration in days 11

16 16 Tokens and Products

17 17 Tokens and Products Having analyzed statistics from the ICO campaigns, we determined: A B C What value and meaning organizers give to the tokens they aim to sell. The stage of development of the products offered to the market. How many projects are planning to tokenize an existing business.

18 18 Tokens and Products In Q3 of 218, ICO organizers offered the following types of crypto assets for sale Vote token Tokens which confer on their holders a right to vote and the ability to influence project development. Cryptocurrency New cryptocurrency (without additional exceptional properties). Security tokens Tokens secured by an obligation (here we include promises of dividend payment, receipt of company shares, credit tokens). Reward token Used to reward the contributions of participants to the network. Service token A token used as the internal currency to pay for project services (can be replaced, for example, with ETH without damage to the product; this is evident when analyzing a project). Hybrid token Payment for services + bonuses for work performed. Utility tokens being tokens of the protocol itself (there is a real need for tokens being sold).

19 19 Token Types Found in ICO Projects HOW TO READ THE GRAPH The graph shows the distribution of projects staging ICOs depending on the type of the project s token. Compared to Q2, the number of projects offering service tokens increased by 6.55%. The share of projects offering security tokens increased by 1.66%. The number of projects with utility tokens decreased by 1.7%..52% Vote token 1.55% Reward token 4.3% Cryptocurrency 49.5% Service token 25.3% Utility token 6.54% Security token 12.47% Hybrid token

20 2 Median of Funds Raised During ICOs by Token Type HOW TO READ THE GRAPH The graph shows the distribution of the mean of funds raised during ICOs depending on the project s token type. Projects offering utility, hybrid and reward tokens were the leaders in terms of median raised funds. The lowest median amount of funds was raised by projects that offered new cryptocurrencies. Token type Cryptocurrency Security token Service token Vote token Utility token Hybrid token Reward token Median raised $.5 M $1 M $1.5 M $1.75 M

21 21 Number of Unsuccessful ICOs by Token Type HOW TO READ THE GRAPH The graph shows the distribution of the number of unsuccessful * projects depending on the project s token type. * A project is considered unsuccessful if the project raised less than $.5 million. Similarly to Q2, projects that offered service tokens were among the least successful projects in this category. There were also a large number of unsuccessful ICOs among projects offering utility and security tokens. Token type Cryptocurrency Hybrid token Reward token Security token Service token Utility token Vote token Number of successful projects Number of unsuccessful projects

22 22 Development Stages for ICO Projects HOW TO READ THE GRAPH The graph shows the distribution of projects staging an ICO by the development stage * of their product at the start of their ICO. * defined by the project s team Compared with Q2, the number of projects aiming to attract funds at the idea stage increased by 18.72%. The number of projects with an already-operating business comprised 5% of all projects ( 1% compared with Q2). The presence or absence of an operating business had no effect on fundraising success. 1.37% fully-ready product 5.79% beta 1.7% code 4.77% alpha 76.15% idea 1.22% mvp

23 23 Median of ICO Funds Raised by Development Stage HOW TO READ THE GRAPH The graph shows the distribution of the mean of funds raised during ICOs, depending on the development stage of products of different projects. The median amount of funding raised among projects staging an ICO with an idea alone is. Development stage Idea Fully-ready product Code Alpha MVP Beta Median raised $.5 M $1 M $1.5 M

24 24 Number of Unsuccessful ICOs by Development Stage HOW TO READ THE GRAPH The graph shows the number of distribution of unsuccessful * projects depending on the development stage of the project s product. The highest percentage of unsuccessful ICOs in terms of product readiness was comprised of projects at the idea stage. 72% of such projects failed to raise more than half a million dollars. * A project is considered unsuccessful if the project raised less than $.5 million. Development stage alpha beta code fully-ready product idea MVP 1 Number of successful projects, Number of unsuccessful projects 2 3

25 25 Industries Review

26 26 Top 2 Project Industries by the Median Hard Cap Industry Banking & Payments Real Estate Exchanges & Wallets Art & Music Computing & Data Storage Sports Internet & Telecommunications Investment Social Media & Communications Business Services & Consulting Media Environmental Services IT Drugs & Healthcare Mining Financial Services Blockchain Infrastructure Legal Services Real Assets Energy & Utilities HOW TO READ THE GRAPH The graph indicates the 2 industries with the largest median hard cap. The X-axis indicates the median declared amount of funds for the implementation of projects from particular industries. Over the past quarter, projects have undergone a radical change in terms of a declared hard cap. It is worth mentioning that projects from the energy and utilities sector and the legal industry had the highest declared hard caps. In general, there is no stable correlation between type of industry and the amount of funding declared at crowdsales. Median Hard Cap $1 M $2 M $3 M $4 M $5 M

27 27 Top 1 Most Popular Industries Industry Business services & consulting Mining Gambling & betting HOW TO READ THE GRAPH The graph shows the top 1 industries by the number of projects belonging to these industries. The X-axis indicates the number of projects, and the Y-axis indicates the industry names. Investment Banking & payments Commerce & retail Following Q2 and Q3 trends, the most popular industry with the largest number of projects was financial services. Blockchain infrastructure Drugs & healthcare Trading Financial services Exchanges & wallets Number of projects 2 4 6

28 28 HOW TO READ THE GRAPH Top 5 Most Popular Industries by Month The graph shows the change dynamics in the top 5 industries by the number of projects that belong to these industries. The Y-axis indicates the number of projects, and the X-axis indicates the month. Number of projects Jul Aug Sep Industries Blockchain infrastructure Gaming & betting 5 Business services & consulting Commerce & Retail 15 2 Financial Services 1 Exchanges & Wallets 15 The exchanges and wallets industry is consistently popular throughout the whole quarter. It is quite unusual to see projects from the drugs and healthcare industry on the list, as this industry has not previously been particularly popular Jul Aug Sep Trading Drugs & healthcare Recruitment & crowdsourcing Banking & payments

29 29 Top 1 Industries by Funds Raised Industries Business Services & Consulting Computing & Data Storage HOW TO READ THE GRAPH The graph shows the top 1 industries by amount raised. The X-axis indicates the number of projects, and the Y-axis indicates industry type. Trading Investment Social Media & Communications The most popular industries in terms of total funds attracted in Q3 were infrastructure and exchange & wallets. This partially resembles the trend in Q2 with the exception of exchanges & wallets projects. Drugs & Healthcare Internet & Telecommunications Banking & Payments Blockchain Infrastructure Financial Services Raised Funds $8 M $9 M $1 M $11 M $12 M $13 M

30 3 Top 5 Industries by Amount Raised per Month Funds raised $1 M Jul Aug Sep Industries Sports HOW TO READ THE GRAPH The graph shows the change dynamics in the top 5 industries by the amount raised of every project belonging to these industries. The Y-axis indicates the number of projects, and the X-axis indicates the month. $5 M $5 M $1 M Computing & data storage Energy & utilities Blockchain Infrastructure $5 M Drugs & Healthcare $5 M Crowdfunding & lending $5 M Data analytics $5 M Education $5 M Exchanges & wallets Industries with the highest received funding vary from month to month. It is quite unusual to see projects from the sports and education industries on such lists, as they have not shown good results in the past. $1 M $5 M $1 M $1 M IT Travel & tourism Mining Banking & Payments

31 31 Number of Projects Distributed by Industry HOW TO READ THE GRAPH Raised funds $15 M The graph shows the distribution of the top 2 industries selected by the total amount raised during their ICOs, depending on the number of projects belonging to these industries. It is worth mentioning that financial services projects, just as in Q2, continued to lead the way in terms of funds attracted and with the number of projects. Other leading industries in terms of funds raised, are blockchain infrastructure and exchanges & wallets. The exchanges & wallets category has the largest number of projects for this quarter. blockchain infrastructure exchanges & wallets $1 M $5 M sports data analytics media IT computing & data storage energy & utilities art & music identity & reputation commerce & retail travel & tourism real assets mining crowdfunding & lending trading banking & payments gambling & betting drugs & healthcare financial services Number of projects

32 32 HOW TO READ THE GRAPH Average Return for ICOs in 218 by Sector The average ROI by industry for the third quarter is positive only for the Marketing & Advertising sector. Industry Marketing & Advertising Trading Exchanges & Wallets Transport Computing & Data storage Commerce & Retail Blockchain Infrastructure Media Financial services Asset management 1% ROI 5% 5% 25% 25%

33 33 ICO Geography

34 34 HOW TO READ THE GRAPH Geographical Distribution for Projects Based on the Country of Registration The map shows the total investment amount and number of projects, depending on country of registration * Canada $47.1 M 5 projects Belize $16.9 M 3 projects USA $61 M 3 projects Barbados $15 M 1 projects Saint Vincent and the Grenadines $19.3 M, 1 projects British Virgin Islandss $12.7 M 12 projects Cayman Islandss $125.3 M 12 projects UK $249 M 39 projects Spain $91.6 M 2 projects Gibraltar $46.9 M 14 projects Switzerland $18.4 M 21 projects Austria $29.5 M 3 projects Germany $16.8 M 8 projects Seychelles $28.9 M 7 projects * The Country of registration means the country in which the company s legal entity is registered at the time of the ICO. If a project does not have a legal entity, it is not included in this map. The country of the project registration is determined on the basis of open data, including the project s official websites and public databases of registered companies. Liechtenstein $33.5 M 3 projects Estonia $72.9 M 26 projects Russia $12.8 M 9 projects Hong Kong $13.9 M 14 projects Singapore $241.3 M 46 projects Australia $44.7 M 14 projects

35 35 Top-2 Countries of Registration based on Median Raised Funds Country UK Estonia Canada Hong Kong Singapore Austria Georgia New Zealand Liechtenstein Cayman Islands HOW TO READ THE GRAPH We have filtered out countries hosting fewer than 3 projects in order to make the analysis less biased. Regarding median funds raised, the best results were shown by projects with company registrations in the Cayman Islands and Liechtenstein. Funds raised $2,5 М 5 М 7,5 М

36 36 Geographical Distribution of Projects Based on Origin of the Project Team HOW TO READ THE GRAPH The map shows the total investment amount and number of projects, depending on project s country of origin * Canada $2.7 M 5 projects UK $157.6 M 22 projects Ukraine $46.3 M 11 projects Russia $182.9 M 63 projects USA Spain $155.5 M $91.2 M 65 projects Italy 4 projects Austria China Dominican Republic $23.9 M 1 projects Romania $21.7 M 4 projects $34.6 M 11 projects Switzerland $36.8 M 9 projects $29.5 M 2 projects Kuwait $41.3 M 2 projects India $67.1 M 18 projects $15.7 M 3 projects Vietnam $27.6 M 5 projects Singapore $78.3 M 16 projects * Country of origin means a country in which more than 5% of team members were actually residing at the time of an ICO. If projects have an international team, they are not included in this map. The country of origin is determined on the basis of open information about the team, including official project websites and team members social media. Israel $19.6 M 6 projects South Korea $68.1 M 17 projects Australia $51.2 M 13 projects

37 37 Top-1 Countries of Origin based on Median Raised Funds Country Estonia South Korea France Ukraine UAE Vietnam Romania Georgia Singapore Spain HOW TO READ THE GRAPH We have filtered out countries hosting fewer than 3 projects in order to make the analysis less biased. The best results based on median funds raised in the 3nd quarter were shown by projects with teams from Spain and Singapore. Funds raised $2.5 M $5 M $7.5 M $1 M

38 38 HOW TO READ THE GRAPH Regional Project funding as a Percentage of the Total Amount of Funds Raised The graph shows project funding as a percentage of the total amount raised during the ICO, according to the project region. The project region is determined on the basis of data for the country of project origin. In the third quarter of 218, the majority of projects were based in Europe, which was the origin for 43% of all projects. Meanwhile, the leader in terms of fundraising was Europe, with 48% of all funds raised. Projects from Asia showed an decrease in funds raised ( 65%), and a drop in the number of launched projects ( 1%) % Europe $663 M raised funds 177 projects 19.51% Asia $268 M raised funds 73 projects 19.46% Other $267.6 M raised funds 93 projects 12.81% North America $176 M raised funds 7 projects

39 39 Post-ICO Performance

40 4 Growth of Capitalization after ICO HOW TO READ THE GRAPH The graph shows the percentage change in market capitalization for projects listed on exchanges. * * Percentage changes are calculated in the following way: Market cap for the given period in USD (in our case, ) / funds raised in USD * 1 1. Projects are arranged in descending order by change in capitalization amount. Capitalization change 25% 25% 5% 75% 5,113% OptiToken DAEX Futurax (FXC) Vikky IGTokens CyClean Talao One Ledger Peculium xcert 4NEW Close price exchanges,364857,31858,113,144,156,8432,6573,7567,159,7823,35679 Projects Market cap Raised Funds $1 M $2 M $3 M $4 M

41 41 ROI 1% 75% ROI after ICOs by Funds Raised (by the end of the quarter) HOW TO READ THE GRAPH The graph shows the distribution of amount of funds and ROI. * According to results from the 3rd quarter of 218, the median return from tokens was 22%. With the exclusion of the project FINTRUX, this figure is 68%. The same indicator was % in the 1st quarter and 55.38% in the 2nd quarter. 88% of tokens were traded below their ICO price. Raised funds $4 M $3 M 5% * ROI was calculated using the formula (Current Value Beginning Value) / Beginning Value, where Beginning Value is the minimum price for 1 token at the ICO, and Current Value is the closed price for 1 token on $2 M 25% $1 M 1% Projects 1%

42 42 Tokens ROI after 3 Days on Exchanges by Raised Funds ROI 1% HOW TO READ THE GRAPH The graph shows the distribution amount of funds raised, and ROI. * According to results from the 3rd quarter of 218, the median return from tokens is 3.35%. 79% of tokens were traded below the ICO price. Raised funds $4 M 75% * ROI was calculated using the formula (Current Value Beginning Value) / Beginning Value, where Beginning Value is the minimum price for 1 token at the ICO, and Current Value is the closed price for 1 token after 3 days of being listed on exchanges. $3 M 5% $2 M 25% $1 M 1% Projects 1%

43 43 Token Sale Structure

44 44 HOW TO READ THE GRAPH The Distribution of Projects Based on the Percentage of Tokens Allocated to Private and Pre-Sale Stages Most projects in Q3 allocated less than 1% of all tokens to pre-sales. Percentage for pre-sale 51-6% 41-5% 31-4% 21-3% 11-2% 1-1% Number of projects

45 45 Median of Raised Funds Based on The Percentage of Tokens for Pre-sale HOW TO READ THE GRAPH The graph shows median distributions of funds raised based on the percentage of all the token supply dedicated to pre-sale rounds. Projects that allocated more than 5% for their pre-sale stages were the most successful in terms of median funds raised. Percentage for presale 1-1% 11-2% 21-3% 31-4% 41-5% Median raised funds 51-6% $5 M $1 M $15 M

46 46 Number of Successful ICOs by Percentage of Tokens Allocated to the Pre-Sale HOW TO READ THE GRAPH Projects in which less than 1% of tokens were allocated to private and pre-sale stages were unsuccessful in 67% of cases. * A project is considered successful if the project raised more than $.5 million. Percentage for pre-sale 51-6% 41-5% 31-4% 21-3% 11-2% 1-1% Number of successful projects Number of unsuccessful projects 2 4 6

47 47 Token Sale Platforms HOW TO READ THE GRAPH The initial emission of tokens in 84% of cases occurs on the basis of the Ethereum platform. At this stage of ecosystem development, Ethereum continues to monopolize the market due to (for example) easy listing on DEX (most tokens on which are also built on Ethereum or the x protocol). 3rd quarter projects also used such blockchains as NEO, Stellar, and Waves % Ethereum 12.6% Other 1.17% Stellar 1.34% NEO 1.68% Waves

48 48 Types of Products Created by Projects About 87% of projects staged their ICOs with the intention of creating a Dapp on a thirdparty blockchain. Infrastructure projects still represent a small fraction of the total number of projects. It is important to note that, according to DappRadar, as of October 1, 218 the highest number of users per day was in the High-Risk category (# 1-333ETH users / 24h). In order to make the top 1 by number of users per day, a marketplace or game should be used by at least 3 people. Additionally, 76 Dapps registered on the platform on (77% of the total number) did not have even a single user per day. Also it is interesting to note that IDEX (about which we wrote in the report for the 2nd quarter) lost about 43% of users in the period from August 1 to October % Custom blockchain 8.96% Protocol 86.13% dapp

49 49 Distribution of Successful Projects by Product Type 67% of all Dapps ICOs were not successful. Unsuccessful campaigns by category: Protocol 43%; custom blockchain 51%. Product type Blockchain Protocol dapp Number of successful projects Number of unsuccessful projects 1 3

50 5 Distribution of Projects Based on Whether the Project is Open-source or not 67% of closed-source projects did not submit anything to the community other than ideas at the time of their ICOs % Open-source 82.17% Closed-source

51 51 Distribution of Successful Projects Based on Whether the Code is Open-Source or not 69.42% of projects that either did not have a GitHub repository, or had a closed GitHub, were unsuccessful in terms of funds raised. 41.9% of projects with open-source code were unsuccessful. Opensource code Open-source Closed-source Number of Projects, Successful Number of Projects, Unsuccessful 1 2

52 52 Distribution of Projects Based on the Company s Age The majority of companies (71%) staging an ICO have existed for less than a year. The average company age is 12 months Number of projects Company life period More than 4 years 3 4 Years 1 2 Years Less than one year

53 53 Distribution of Projects Based on the Number of Developers 79% of all projects staging ICOs had fewer than 5 developers on their team. Only 1% of projects had more than 1 developers on board Number of projects Number of developers 9 >1 5 1 <5

54 54 Distribution of Projects by Product Launch Year Most Q3 projects have promised to release a finished product in 219. Numbers of projects

55 55 Private Token Sale and Blockchain VC

56 56 The Main Figures for Blockchain VC $957,91,86 have been collected by 78 blockchain projects via VC funding rounds. $17.4 million The average funding of projects with a disclosed amount of investment is 17.4 million.

57 57 Comparing Funding of Blockchain Projects via ICO and VC The rate of decline in fundraising for the quarter is similar for the VC and ICO methods. Product type Jul Aug Sep ICO VC 25 M 5 M 75 M

58 58 Distribution of VC-funded Blockchain Projects With and Without a Token About half of projects are planning to implement a token into their product. 54% Non-Tokenized 46% Tokenized

59 59 Distribution of VC-funded Blockchain Projects Based on Whether they Held an Airdrop or not About 13% of projects refer to existing ways of attracting the crypto community to their projects and assets. 13% Had an Airdrop Campaign 87% Had No Airdrop Campaign

60 6 Top Industries with Highest Cumulative Sum of Raised Funds Industries Banking & Payments Media Art & Music The most popular Q3 industries for VC are the Financial Services and Blockchain Infrastructure categories. This trend is similar to that found in crowdsales. Trading Exchanges & Wallets Gaming & VR IT Computing & Data Storage Blockchain Infrastructure Financial Services Raised Funds $1 M $2M

61 61 Distribution of VC-funded Blockchain Projects Based on Product Type 15% Blockchain 7% Protocol 78% Dapp

62 62 Cumulative Sum of Funds Raised by Product Type Both in terms of the number of projects receiving funding and in terms of the amount of funds raised, the dapps category is in the lead. Protocol Blockchain Dapp Sum raised $2 M $4 M

63 63 Distribution of Project Based on Company Age 31 Number of projects Company life period More than 4 years 3 4 Years 1 2 Years Less than one year

64 64 Median VC Funding Raised by Development Stage Projects with a ready beta version were the most successful in terms of median raised investments. Development stage Idea Fully-ready product Code Alpha MVP Beta Median raised $2 M $4 M

65 65 Geographical Distribution of Projects Based on Country of Registration USA $364.1 M 15 projects Cayman Islands $27 M 1 project UK $3.3 M 4 projects Switzerland $12 M 1 project Monako 1 project Slovenia $.1 M 1 project Israel $1 M 1 project Kenya $.5 M 1 project China $5.3 M 7 projects Singapore $31.6 M 3 projects Argentina 1 project Mauritius $.3 M 1 project Australia $2.9 M 2 projects

66 66 Geographical Distribution of VC-funded Projects Based on Origin of Project Team Monaco 1 project Russia 1 project USA $299.6 M 16 projects UK $6.2 M 3 projects Germany $2 M 1 project Slovenia $.1 M 1 project Israel $19 M 2 projects China $141.1 M 12 projects Multinational $293.1 M 6 projects Kenya $.8 M 2 projects Taiwan 1 project Argentina 1 project South Africa 1 project Australia $2.9 M 2 projects

67 67 Have a question or want to learn more about market dynamics? Contact us. Primary Contact: Anastasia Blake Chief Business Development Officer bizdev@ You can also subscribe to our weekly market updates at and receive fresh market info every week. The Rating Agency for the ICO Market icorating icorating ico_rating