According to Cointelegraph, there were 2,284 ICOs in 2018 compared to just 991 ICOs in 2017. While the number of ICOs more than doubled. the total amount raised was in 2018 was 11.4 which was just 13% more than 2017. This has led to some analyst predicting that
However, the demise of the ICO has been greatly exaggerated as 2019 gets off to a good start. 2019 is expected to grow based on other types of coin offering including ICOs, security token offerings (STO), stable coins and IEOs. Many companies with existing operations and a history of revenues are expected to execute reverse ICOs to tokenize their offerings.
No matter what type of token offering, they all require marketing. According to the bitcoin marketing journal, the average ICO/STO costs from $100,000 to $500,000. The largest budget item on the expense list is consistently the marketing budget at 10-20% of the desired funds raised. This mean that a project that wants to raise 20M will typically spend 2-4M just for marketing.
While the average cost is 100-500k based on many projects having some good backing, new crowdfunding regulations
2019 is expected to the year of the institutional money. Big players such as NYSE and NASDAQ are investing and building infrastructure for institutional investors which will drag other investors back into the market. 2018 already saw the likes of Sequoia Capital and Benchmark and more traditional venture funds are expended to jump in on both ICO’s and STO’s.
Another driving factor to bring in Institutional money is the trend towards more regulation. Clear policies will enable the funds to participate, especially for regulated and compliant tokens sales.
In addition to ICOs, 2019 will also be the year for Initial Exchange Offerings (IEOs). Up to this point, ICOs have been the primary fund raising method with STOs are growing rapidly. Instead of projects trying to run their own ICO or STO, more are likely to offer their token sale on trustworthy exchanges that handle all the compliance on their behalf. This also allows the exchange to handle the token after the sale which makes for a smooth transition.
The most bullish potential for 2019 is STOs. STOs allow projects to issue tokens which represent ownership in a physical asset, units of mutual funds or shares of equity in the company. Regulators are more likely to open up to compliant STOs and investors are more comfortable with compliant offerings