ICObench Report: ICO and IEO market shows growth after a “cryptocurrency winter”
The ICO and IEO industry is showing signs of growth due to positive investor sentiment, obviously spurred by a recent cryptocurrency rally.
These data published in the new report of the rating agency ICObench. As of May 21, the ICO's success rate has increased, reflecting an improvement in the quality of projects. 85% of all funds raised in May were received by projects with a high rating (3-3.5), while in April, the share of these ICOs accounted for 68% of the funds raised.
According to ICObench, the number of projects in May increased by 157, reaching 5,512 ICOs, while already 287 ICOs are raising funds at the moment and 140 projects are preparing for launch. The report notes that the total amount of funds raised in May significantly increased by the initial exchange offerings (IEO) of the Bitfinex cryptocurrency exchange, the total amount of which was $ 1 billion. As a result, the total amount of funds raised through token sales this month reached approximately $ 1.075 billion.
According to the report, in addition to Bitfinex, the Economi and Poseidon IEO projects raised about $ 10.5 million and $ 2.4 million, respectively. The sum of all funds raised in the top five IEOs (excluding Bitfinex) this month was almost $ 15.5 million. The large sale of Bitfinex tokens resulted in May being the month with the highest total amount of funds raised in 2019. According to ICObench, previously only in May and June 2018, higher rates observed.
In terms of geographical distribution, the British Virgin Islands took the lead in terms of funds raised, followed by the Cayman Islands. The largest number of ICO projects were based in the UK, but the country ranked only 7th in terms of the total amount of funds raised.
According to the latest BitMEX survey, investment in ICO has dropped by 97%, while the number of IEOs is increasing. According to another ICObench report, less than 350 ICO held in the first quarter of 2019. In addition, according to an ICObench study published late last month, the number of active and completed IEO projects exceeded 50 projects.