ICORating annual report '17 12-02 · ICORATING.COM ICORating annual report '17 3 Secondary Contact:...

ICORating Annual Report 2017

Secondary Contact:Mikhail Mironov, Head of Sales and Partnerships, Amsterdam, +31 6 83624781, [email protected]

Primary Contact:Brian Kean, CBDO, New York | San Francisco, +1 6095980797, [email protected]

MEAN CAPITAL RAISED DURING ICOs BY QUARTER

Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

TABLE OF CONTENTS

5

2

6

8

9

13

10

11

6

11

9

14

3

4

7

12

10

TABLE OF CONTENTS

ABOUT ICORATING

SOME KEY CUSTOMERS IN TERMS OF AMOUNT RAISED

ICO MARKET REVIEW

ANALYSIS OF THE ICO INDUSTRY IN 2017

KEY 2017 ICO NUMBERS

TOP 20 ICOs IN TERMS OF MONEY RAISED IN 2017

CAPITAL RAISED DURING ICOs BY QUARTER

NUMBER OF SUCCESSFUL ICOs AND CAPITAL RAISED IN 2017

TOP 10 MOST POPULAR INDUSTRIES FOR ICO PROJECTS IN 2017

TOP 5 MOST POPULAR INDUSTRIES FOR ICO PROJECTS IN 2017 BY QUARTER

TOP 10 INDUSTRIES IN TERMS OF CAPITAL RAISED IN 2017

TOP 5 INDUSTRIES IN TERMS OF CAPITAL RAISED IN 2017 BY QUARTER

LOCATION OF ICO PROJECT BASED ON COUNTRY OF INCORPORATION

LOCATION OF ICO PROJECT BASED ON COUNTRY OF ORIGIN

PROJECTS DISTRIBUTION BASED ON CAPITAL RAISED AND ROI

ANALYSIS OF ICO TOKEN TRADING AND ROI IN 2017

PROJECTS THAT RECEIVED INVESTMENTS FROM VC

TOTAL CAPITAL RAISED IN 2017

8

7


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

ICORating annual report '17 3ICORATING.COM



ABOUT ICORATING

ICORating is a rating agency that issues independent analytical research, evaluates ICO projects and

assigns them ratings.

Investing in ICOs is a potentially very profitable but high-risk investment. The ICO market is currently at

a development stage and is not yet fully regulated.

At ICORating we aim to develop clear assessment standards for projects and assign ratings based on a

transparent and standardized scale. A deep and unbiased analysis of a project (the technical features

of the platform, the business model, the team and the strengths and weaknesses of the decentralized

infrastructure) allows us to objectively evaluate risks and create a complete picture of the project and

its potential.

A rating conducted by ICORating provides investors with a foundation for making a well-informed

decision. At the same time, it demonstrates the openness and commitment of its project founders thus

making it more attractive for investors. It increases the chances of a successful fundraising through an

ICO.

Our main mission is to help the market achieve the necessary standards of quality, transparency and

reliability.

LOCATIONS: NEW YORK, SAN FRANCISCO, SINGAPORE, AMSTERDAM, ST.PETERSBURG

$1.23blnProjects listed at the website

with Risk Score and Hype Score calculated

$23.1mlnAverage amount of funds

collected by the projects rated by us

880 $9 mln


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

ICON

$45 mlnIndahash

$42.7 mlnINS Ecosystem

$45.3 mln

WAXToken

$80 mlnNeuromation

$71.6 mlnBANKEX

$70.6 mln




SOME KEY CUSTOMERS IN TERMS OF AMOUNT RAISED


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

ICO MARKET REVIEW

We developed a tailor-made approach that considers the specificities of this new industry as well as its

maturity when analyzing and assessing projects. This approach considers the early stages of the

market and it’s innovative nature. Project benchmarking remains a challenge due to the limited

number of analogue firms in traditional market segments.

This scheme* presents a hierarchical structure for blockchain projects and more especially for the ICO

market. The highlighted levels split infrastructure related products versus DAPP which are divided into

sublevels. The scheme is built in a way that the higher the level, the less its scalability. Therefore,

projects that belong to the decentralized application platform and interoperability sublevels are the

most scalable.

Later in the report you will also be able to see how trends in categories of projects staging their ICOs

changed throughout 2017.

*Projects for the scheme were selected based on a threshold of 1 million USD raised through an ICO, and the project token is traded on a

secondary market; exceptions include Filecoin (the token itself is not traded but its futures) and Blockstack. The scheme presents past ICOs.




ANALYSIS OF THE INDUSTRY IN 2017

Investment in ICO for the full year 2017 generated an median ROI of . The median amount 116.63%

of funds raised per projects staging their ICOs in 2017 was $1,720,000. The total amount of funds raised

by ICOs in the past year was $6,184,529,460.

Projects such as Filecoin, Tezos and EOS (Stage 1) raised the largest amounts in 2017.

Well established large companies are looking at ICOs as a way of attracting investments. At the end

of 2017, projects that entered the market included CarFix (VLB), Kik (Kin), Hornet, Telegram, Kodak, etc.

The emergence of these type of projects, especially when asset tokenization was involved, raised

questions such as ownership structure and investor rights. We may even question the need to

transform the corporate structure to better adapt with these new ways of raising money.

Only 24% of ICOs in 2017 had an official legal status. We see an increasing trend in these percentages

in 2018. In early 2017, the absolute majority of these projects did not have a token agreement before

the ICO; now, when a quarter of ICOs have legal status, assessment of the quality of development is

affected by the availability of such documentation. This is largely due to the increased interest of

regulators within different countries where ICO campaigns happen. We should also notice new market

behavior such as terminating project activity upon request from regulators (SEC, the Chinese regulator

- National Development & Reform Commission).

Projects with KYC procedures are becoming increasingly more trustworthy. Projects staging their

ICOs with the help of SAFT (Filecoin) raise considerable amounts of funding; these are the first steps

toward a market regulation initiated by investors’ desire to mitigate their risks.

The significant growth in ICO campaigns in 2017 led to the creation of an infrastructure service

providers. Currently there are more than 100 listings (the USA, Russia, the UK, China) with more than 80

companies providing services for staging ready-made ICOs and ICO marketing (the USA, Russia, the UK,

Switzerland, Singapore). There are more than 100 funds investing in ICO tokens and cryptocurrencies

(the USA, Singapore, Netherlands, Cayman Islands).

KEY 2017 ICO NUMBERS

Out of 800 ICOs* completed in 2017, only half raised more than $100,000 and only a third were able to

get listed on exchange markets.

* We consider only the main crowdsale period without the pre-ICO. If a project raised all necessary funds during its pre-ICO and cancelled its

main crowdsale, it is included in this estimation.




391 ICOs

funding >$100,000

270 tokens

are traded on exchanges

800 ICOs

in total


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

Q1 Q2 Q3 Q4

0 0

$1,000,000,000

$2,000,000,000

$10,000,000

$3,000,000,000 $20,000,000

CAPITAL RAISED DURING ICOs BY QUARTER

In 2017 the most successful ICO projects were the ones that promised to make blockchain and

cryptocurrencies more suitable for common use: blockchain protocols for exchanges, deposits,

payments, token issuing, rewards, etc. However this does not mean that a project’s focus guarantees

ICO or post-ICO success.

In 2017, there has been an overall upward trend in the accumulated investmements received during ICOs.




Fu

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$100,000,000

$200,000,000

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coin

TOP 20 PROJECTS BY FUNDS RAISED DURING ICO

3,088,442,163$

1,136,705,856$

33,539,181$

TOP 20 ICOs IN TERMS OF MONEY RAISED IN 2017

1,925,842,260$





The leaders in the implementation of ICOs during 2017 were projects influencing the infrastructure of

blockchain and the financial industry.

Nu

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of

pro

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Industries

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20

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TOP 10 MOST POPULAR INDUSTRIES IN 2017

* A project is considered to be successful if the soft cap was reached, or, if there was no soft cap, the project raised more than $500,000.

UPDATED ANNUAL GRAPH FOR COLLECTED FUNDS AND THE NUMBER OF SUCCESSFULLY COMPLETED PROJECTS

Raised Successfully Completed Projects: 2017

To

tal

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rais

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fun

ds

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$400,000,000 20

$200,000,000 10

$800,000,000

$1,200,000,000

40

$600,000,000 30

$1,000,000,000

$1,400,000,000

50

60

70

Jan JulFeb AugMar SepApr OctMay Nov Dec Jun

NUMBER OF SUCCESSFUL ICOs AND CAPITAL RAISED IN 2017

Investors in 2017 focused their investments on projects that are changing the blockchain

infrastructure as well as in the fields of Data Storage and Payments. These projects have attracted

larger investments than for the market on average.




Industries

0

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ess

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& C

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TOP 10 INDUSTRIES WITH HIGHEST FUNDS RAISED IN 2017

Fu

nd

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ais

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$500,000,000

$1,000,000,000

$1,500,000,000

Blo

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In

fra

stru

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TOP 10 INDUSTRIES IN TERMS OF CAPITAL RAISED IN 2017


BY QUARTER

In Q4 2017, trending industries were Banking and Payments, Marketing and Advertising, Blockchain

Infrastructure, Financial Services and Gaming/VR. The number of projects in these industries are

expected to grow during Q1 2018.

Nu

mb

er

of

pro

jects

TOP 5 MOST POPULAR INDUSTRIES IN 2017 BY QUARTER

Q1 Q2 Q3 Q4

Industries

Industry

0

25

50

100

75

125

Trading

Social Media & Communication

Business Services & Consulting

Investment

Banking & Payments

Exchange & Wallets

Computing & Data Storage

Gaming & VR

Gambling & Betting

Financial Services

Blockchain Infrastructure

Marketing & Advertising

Australia

$26mln / 7

Israel

$2mln / 1

The Federation of Saint Kitts and Nevis

$0,167mln / 1

Canada

$1mln / 1

Cayman Islands

$93mln / 5

Curacao

$0 / 1

China

$36mln / 6

Japan

$116mln / 4

Cambodia

$10mln / 1

India

$13mln / 4

UAE

$0,577mln / 1

Seychelles

$10mln / 11

Mauritius

$4mln / 1

Samoa

$5mln / 11

Costa Rica

$6mln / 1

Ukraine

$0 / 2

the UK

$289mln / 22

S. Korea

$37mln / 3

Malaysia

$5mln / 1Philippines

$1mln / 1

the USA

$626mln / 45

Panama

$5mln / 1

Russia

$19mln / 4

Singapore

$477,5 / 25

Hong Kong

$0,225mln / 1

EUROPE

$878mln / 71

British Virgin Islands

$72mln / 6

Island of Nevis

$2mln / 1

LOCATION OF ICO PROJECT BASED ON COUNTRY OF INCORPORATION

The most frequent countries for business registration are the USA, Singapore, Switzerland, Estonia and

the UK. Singapore's leadership, for example, is largely influenced by China's negative attitude towards

ICOs. At the same time, Estonia is one of the most ICO friendly countries.




During the last three quarters of 2017, investment in projects aiming to change the blockchain

infrastructure have experienced a growth trend.

TOP 5 INDUSTRIES WITH HIGHEST SUM OF FUNDS RAISED IN 2017 BY QUARTER

Prediction Markets

Internet & Telecommunications

Q1 Q2 Q3 Q4

Industries

0

Fu

nd

s R

ais

ed

$500,000,000

$1,000,000,000

$1,500,000,000

Social Media & Communication

Business Services & Consulting

Investment

Banking & Payments

Exchange & Wallets

Computing & Data Storage

Gaming & VR

Gambling & Betting

Financial Services

Blockchain Infrastructure

Industry

TOP 5 INDUSTRIES IN TERMS OF CAPITAL RAISED IN 2017 BY QUARTER


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

PROJECTS DISTRIBUTION BASED ON CAPITAL RAISED AND ROI

Based on the statistics for token trading in 2017, a high amount of funding raised and excitement

around a project is not a guarantee of a high return (high multiplier) on investment.




ICO ROI BY FUNDS RAISED

ROIFunds Raised during ICO

$50,000,000

0 0%

$100,000,000

1000,000%

$150,000,000

3000,000%

5000,000%$200,000,000

2000,000%

$250,000,000

4000,000%

6000,000%

EtherollWings

Neblio

Decentraland

Edgeless

Tokens with ROI over 5,500% were eliminated in order to make the plot more interpretable.

Argentina

$26mln / 2

Brazil

$19mln / 2

Australia

$132mln / 13

Israel

$330mln / 11

Belize

$4mln / 2

Canada

$233mln / 13

British Virgin Islands

$16mln / 3

Nigeria

$0,019mln / 1

China

$273mln / 17

Japan

$180mln / 7

Cambodia

$10mln / 1

Vietnam

$0 / 1

Thailand

$0 / 1India

$33mln / 5

UAE

$6mln / 3

Seychelles

$13mln / 3

Chile

$0,6mln / 1

Costa Rica

$16mln / 3

Georgia

$0,006mln / 1

Ukraine

$0,353mln / 1

the UK

$200mln / 32

Kazakhstan

$0,3mln / 1

S. Korea

$103mln / 7

Malaysia

$9mln / 4

Mexico

$0 / 1

the USA

$2025mln / 114

Taiwan

$23mln / 2

Marshall Islands

$0 / 1

Panama

$1mln / 1

Russia

$622mln / 96

Singapore

$446mln / 31

Hong Kong

$18mln / 4

South Africa

$15mln / 4

EUROPE

$997mln / 121

LOCATION OF ICO PROJECT BASED ON COUNTRY OF ORIGIN

In 2017, the United States, Russia and the United Kingdom were the most active countries in investing

through ICOs. The same countries were leaders in the total amount of funding raised by projects.


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

BEST ROI RESULTS AS OF 31.12.2017

When considering the best ROI results for 2017, we excluded some tokens due to their highly

speculative nature.




Project Name

Ethereum.link

Lunyr

Ignis

Matchpool

Edgeless

0.0173LNK

0.0227LUN

0.04IGNIS

0.0083

0.04

GUP

EDG

63.89

23.33

14.25

0.877876

2.25

369206.36%

102675.33%

35525.00%

10476.82%

5525.00%

NEO

ICON

Populous

OmiseGO

Wings

0.03NEO

0.01ICX

0.25PPT

0.35

0.028

OMG

WINGS

75.96

5.35

41.53

19.89

1.27

253100.00%

53400.00%

16512.00%

5582.86%

4435.71%

ICO token

price, $

Тoken Current price

(2017/12/31), $

ROI

ANALYSIS OF ICO TOKEN TRADING AND ROI IN 2017

Based on projects that started trading in 2017, the average return on tokens for the year 2017 was

116.63%. The following table shows price data during ICO and considers possible discounts in the

pre-ICO sale.

WORST ROI RESULTS AS OF 31.12.2017

Project Name

DS Plus (PlusCoin)

Encrypgen

Bolenum

OX Fina

Facecoin

13PLC

2843DNA

5.76BLN

0.07

1.4

OX

FC

0.000742

0.688885

0.023157

0.000497

0.012987

-99.99%

-99.98%

-99.60%

-99.29%

-99.07%

PLUSCOIN

BlockMason

E4ROW

Hero

Gimli

10PLC

307.35BCPT

13.24E4ROW

2.5

2.03

play

GIM

0.000742

0.456501

0.088776

0.020260

0.059372

-99.99%

-99.85%

-99.33%

-99.19%

-97.08%

ICO token

price, $

Ticker Current price

(2017/12/31), $

ROI


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146




Bread

Cappasity

Playkey

Ripio

Cindicator

investFeed

Oct 1, 2015

Dec 18, 2015

Jul 16, 2017

Sep 1, 2013

Jun 30, 2016

Nov 1, 2014

$1,200,000

$700,000

$2,800,000

$3,725,000

Apr 1, 2015

Jun 17, 2014

Jan 4, 2017

$250,000

$250,000

Liberty City

Draper Associates

Digital Currency Group

Plug and Play

South Ventures

Starta Capital

Fenbushi Capital

NXTP Labs

IIDF

The Whittemore Collection

East Ventures

and Angels

Boost VC

Pantera Capital

Angels

Digital Finance Group

Clarsia Investments

Wicklow Capital

Project Name

Storj

Civic

Blackmoon

1 Feb 2016

Jan 29, 2016

Nov 10, 2016

$2,000,000

$2,750,000

$2,500,000

Transaction DateFunds Transaction Sum

GVA.CAPITAL

Future Perfect Ventures

Pantera Capital

Flint Capital

Bitcoin Capital

Founder Collective

Social Leverage

Target Global

13 of the project that staged their ICOs in 2017 (out of those traded on the exchanges) recieved more

than $97,180,000 of investments from VC, Angeles, and other companies since the launch of their

projects and to the start of their ICOs.

PROJECTS THAT RECEIVED INVESTMENTS FROM VC


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

TOTAL CAPITAL RAISED IN 2017

In most cases projects raised less than half a million dollars through an ICO. This could indicate an

insufficiently prepared or simply an inadequately grounded project that doesn’t attract investor

appetite.




OVERALL ICO FUNDING AMOUNT IN 2017

100 200 3000

1-5 mln USD

0,5-1 mln USD

0-0,5 mln USD

10-25 mln USD

50-100 mln USD

100-150 mln USD

5-10 mln USD

25-50 mln USD

>150 mln USD

Projects

Fu

nd

ing

ra

ise

d

Apr 19, 2016

Sirin Labs

Tierion

Unikrn

Viberate

Apr 25, 2016

Apr 29, 2016

Jun 30, 2015

Feb 6, 2017

$72,000,000

$1,000,000

$7,000,000

$1,005,000

Fenbushi Capital

ABC Accelerator Group

Digital Currency Group

500 Startups Binary Capital

Renren

Blockchain Capital


Q1: 33,539,181

Q2: 1,136,705,856

Q3: 1,925,842,260

Q4: 3,088,442,163

Q1: 3,353,918

Q2: 17,761,029

Q3: 12,424,789

Q4: 8,001,146

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