ICOs have also raised over US$3 billion in 2017; the bulk of which came in the last six months
Despite major countries banning the fundraising strategy, Initial Coin Offerings (ICOs) exploded in September and raised US$850 million in 37 token sales, according to Bloomberg.
The busy month means that, from about eight weeks ago, ICOs have raised US$1 billion, bringing the 2017 total to over US$3 billion.
To put this number in some perspective, it is about the same amount of money invested in Indonesian companies between January to August 2017.
Furthermore, to say ICOs raised US$3 billion in 2017 is a bit misleading. The industry was essentially nascent until April 2017 when the value of cryptocurrencies began a sustained period of exponential growth.
Since April, the price of Bitcoin has risen from about US$1,000 to US$5,600 today. Ethereum rose from US$50 to US$340 in that same period. The bulk of the US$3 billion was raised in six months between May and October.
According to the article, October looks like it will be a slowdown from September, but still, companies have already raised US$150 million this month.
Growth despite bans and industry debate
The growth of ICOs has happened so quickly, and without any cohesive regulations, that it has become a topic of fierce debate within the technology community. They have been argued as a disruptor to VCs, an unregulated opportunity for shady dealings and an innovative new strategy to get companies off the ground.
The explosion of ICOs as a funding strategies has been one of the most interesting and unpredicted stories of 2017.
Copyright: vectorfusionart / 123RF Stock Photo
The post ICOs have raised a billion dollars since mid-August appeared first on e27.