In 2017, the number of ICO launched by Russian startups increased five-fold, and the total amount of investments in them reached $ 200 million, experts of the trading platform CryptoBazar told Izvestia.
“Russian entrepreneurs attracted from all over the world in their projects in 2017 investments in cryptocurrencies by more than $ 200 million and a year earlier there were $ 20 million. Start-ups from Russia launched more than 100 projects in the cryptocurrency, and in 2016 there were about 20 of them”, – said the founder of the trading platform CryptoBazar and the same name fund Oleg Ivanov.
According to experts, now every fifth ICO is launched by immigrants from Russia. In total, over the past four years, teams from the Russian Federation have collected more than $ 260 million – 11% of the total amount of all placements. Among such projects: supercomputer SONM ($ 42 million), Russian Mining Company (RMC) ($ 45 million), mobile gaming platform MobileGo ($ 53 million), industrial startup for the production of synthetic zirconium dioxide ZrCoin ($ 4.5 million).
According to Ivanov, the average return on investment has also increased – up to 30 000%. Such profitability is due to the growth of the rate of digital assets and the general interest in this area. So, over the past four years, companies with the help of ICO managed to attract an average of $ 2 million for a large project, but in 2017 this indicator reached $ 22.6 million.
“Since the cryptocurrency itself is a risky sphere, attracting investments in it is a risk in the cube. Investments in projects at an early stage in principle do not give any guarantees of profit. And here also the means are raised in the cryptocurrency, the price of which is extremely variable. There can be as a plus of thousands of percent, and minus. Therefore, no matter how troublesome and expensive is the already existing IPO (initial public offering), ICO will not replace them, ” said co-founder of the international cryptbank Wirex Dmitry Lazarichev.
Recall, in mid-January, the president of the public organization “Business Russia” Alexey Repik called the ICO a successful format for attracting investment by individual entrepreneurs.
He also stressed that the individual entrepreneur, unlike enterprises, has less resources that the bank can offer as collateral for the loan.
At the end of 2017, the Central Bank of Russia announced that it views the ICO as an alternative form of raising capital along with crowdfunding. In the meantime, the Ministry of Finance proposed to introduce a limit on the maximum allowable amount of financing attracted by start-ups through primary placement of coins to 1 billion rubles.