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.

Also Read: This Singapore blockchain startup wants to replace banks; has raised over US$15M in ICO to do so

Growth despite bans and industry debate

These numbers in spite the fact that China, which has both the world’s largest population and an enthusiastic crypto culture, banned ICOs. In late-September, South Korea followed suit.

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.

Also Read: Infographic: What’s an Initial Coin Offering (ICO), and how does it impact the fintech and cryptocurrency industries?

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