The amount of money raised through the ICO exceeded $ 4 billion

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Despite the concern of regulators around the world, the volume of funds raised through the ICO exceeded $ 4 billion, writes WSJ. At the same time, most of these funds were collected in 2017: in 2016 this figure was $ 225 million.

2017 as a whole became a breakthrough for everything that is directly or indirectly associated with bitcoin, cryptocurrencies and blockchain. Along with the growth, the cryptocurrency, especially bitcoin, which at the beginning of the year still did not reach $ 1,000, and now costs $ 17,000, the ICO market also grew. According to the research company Autonomous Research, according to the results of 2016, the amount of funds raised through the initial placement of cryptocurrency amounted to $ 225 million. This year this amount increased 18-fold.

Nevertheless, the number of critics of this model of attracting capital is constantly growing. The danger and riskiness of the ICO was expressed by the regulators of almost all large states. They warn that a person investing in this way is in no way protected by law, which is what many unscrupulous companies use. Of the latest accusations: former representative of the Securities and Exchange Commission (SEC), Stanford University professor Joseph Grundfest said that the ICO is a violation of all existing standards and called on the SEC to introduce restraining measures as soon as possible.

In 2017, a large number of start-ups attracted funding through the ICO. They celebrated success, competed in the one who managed to attract more investment, and slowly the noise subsided. Further comes the most difficult. Companies will have to realize what they have collected money for, and at this stage, many are waiting for problems to appear. It is obvious that in 2018 we will see the first real successes and failures of the ICO model, because we will need to show results. In this case, the first cases of fraud and loss of money by investors have already appeared. For example, we wrote about how hackers robbed Tether for $ 30 million in a cryptocurrency.

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