Pavel Durov at the DLD Conference 2012 - Day 3
Telegram CEO Pavel Durov.
Telegram has raised $1.7 billion through an ICO this

Nadine Rupp/Getty

  • Autonomous NEXT: $9.1 billion raised through ICOs so
    far in 2018.
  • But if you strip out two mega deals — Telegram and — deal activity per-month is lower than at the end of

LONDON — Cryptocurrency startups have raised over $9 billion
through so-called initial coin offerings in 2018, according to
consultancy Autonomous NEXT, but the rate of activity is slowing

“Well, there doesn’t seem to be another way to say it — ICO
activity is absolutely and unequivocally slowing down,” the
financial consultancy said in an email newsletter on Monday.

ICO, short for initial coin offering, is a new form of
fundraising activity that became hugely popular in 2017. Startups
mint their own digital currencies, structured similarly to
bitcoin, and sell them in exchange for bitcoin or ether. These
cryptocurrencies can then be sold for fiat currencies or used as
funding themselves.

These coins are often linked to an underlying product or company
but there are no requirements for this. Regulators around the
world have warned investors that ICOs are speculative, high-risk

Startups, most of them looking at blockchain technology, raised
$6.6 billion last year through ICOs, according to Autonomous
NEXT, and have raised $9 billion via ICOs so far this year.


While that already eclipses the 2017 total, Autonomous NEXT said
this figure is boosted by two mega deals that are unlikely to be

Messaging app Telegram, which is hugely popular with the crypto
community, has
raised $1.7 billion through an ongoing ICO
the startup behind the EOS token,
on Friday closed a $4 billion raise.

“If we pull out Telegram and EOS on a monthly basis, the monthly
trend look severely down — to $560 million from a high of $1.5
billion in December 2017,” Autonomous NEXT wrote.

“So unless you believe in the continued presence of mega deals,
token offerings have indeed been dragging due to continued
regulatory uncertainty, tax overhang, and a lack of tangible
progress in software adoption by the mainstream consumer.”

The consultancy said it is hopeful that deal activity will
pick-up once regulators take more definite action to establish a
framework around ICOs.

“Just look at the Internet wave: March 2000 was the peak value
share a percentage of market capitalizations,” the consultancy
wrote. “Despite the crash, the web has never been more present or
important than today. Will crypto follow the same hype cycle

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