A report published earlier this week confirmed that initial coin offerings (ICOs) are more popular in Europe than anywhere else in the world. According to the report, the majority of capital raised using ICOs comes from Europe.
The report was published by the European company, Atomico. This venture capital firm has grown to be one of the largest operations of its kind in Europe. The report states that since startups decided to create an ICO and bring them to the market in 2014, European-based startups have collectively raised $1.76 billion, which equates to 46% of ICO capital raised worldwide.
ICOs have proven to be an effective and lucrative way for entrepreneurs to raise millions in capital in short spans of time. ICOs are also thought to have contributed to cryptocurrency’s immense growth. Despite the wide-spread belief that Bitcoin is an investment bubble, the cryptocurrency has demonstrated a 1,000% growth rate since January 2017.
Atomico conducted their study based on research previously conducted by TokenData. According to a key researcher, Ricky Tan, the information gathered goes as far back as 2014, despite the fact that the overwhelming majority of ICOs have only occurred this year.
The data shows that Switzerland accounts for the majority of Europe’s ICOs. According to Tan, Swiss ICOs accounted for $828 million, which equates to 47% of total ICO capital raised in Europe. Most Swiss startups that launched their ICO registered their company in Zug. This area is close to Zurich and dominated by fintech-related companies, due to the area's low-tax incentives.
In comparison, the US raised $1.08 billion in ICO capital, which is 28% of the total market share. So far, this industry has generated $3.8 billion via their issued tokens.
According to the Atomico report, Europe is likely to remain a key player in the ICO industry in the next few years. The report notes that due to the demonstrated success of ICOs in 2017, larger firms are likely to be attracted to launch their very own ICOs. This suggests a notable mind shift in traditional modes of financing, as traditional institutions previously considered ICOs to be risky when compared to more traditional financing methods.
The US is also likely to enter the market more readily in 2018. Several reputable venture capital companies, including Union Square Ventures and Andreessen Horowitz, have already invested in ICOs.The Berlin-based Blueyard Capital has also begun to invest in ICOs.
However, Europe’s most reputable firms have not yet made their position clear on ICOs and whether they intend to invest in them in the future. ICOs offer users a different way of generating capital. By launching token sales, ICOs provide companies with an innovative way to generate funds quickly while offering investors a more interactive way of participating.
ICOs have become notably popular in markets that still remain largely unregulated. However, some countries have been imposing strict policies, and even bans, on the ICO investment method. China began to crack down on ICOs just a few months ago, while South Korea has also prohibited token sales. In addition, the US Securities and Exchange Commission (SEC), is likely to start monitoring the industry more closely, especially after certain fraudulent ICOs that have emerged in the last year.
Other notable countries that have made contributions to the ICOs industry are Germany and Austria. With Switzerland, these three countries have collectively raised $976 million. This number is far ahead of other European regions, including eastern Europe and the United Kingdom. Europe is also ahead of the UK in terms of the number of ICOs. While Europe has launched 162 ICOs, the UK has launched a mere 90.
The report was published by the European company, Atomico. This venture capital firm has grown to be one of the largest operations of its kind in Europe. The report states that since startups decided to create an ICO and bring them to the market in 2014, European-based startups have collectively raised $1.76 billion, which equates to 46% of ICO capital raised worldwide.
ICOs have proven to be an effective and lucrative way for entrepreneurs to raise millions in capital in short spans of time. ICOs are also thought to have contributed to cryptocurrency’s immense growth. Despite the wide-spread belief that Bitcoin is an investment bubble, the cryptocurrency has demonstrated a 1,000% growth rate since January 2017.
Atomico conducted their study based on research previously conducted by TokenData. According to a key researcher, Ricky Tan, the information gathered goes as far back as 2014, despite the fact that the overwhelming majority of ICOs have only occurred this year.
The data shows that Switzerland accounts for the majority of Europe’s ICOs. According to Tan, Swiss ICOs accounted for $828 million, which equates to 47% of total ICO capital raised in Europe. Most Swiss startups that launched their ICO registered their company in Zug. This area is close to Zurich and dominated by fintech-related companies, due to the area's low-tax incentives.
In comparison, the US raised $1.08 billion in ICO capital, which is 28% of the total market share. So far, this industry has generated $3.8 billion via their issued tokens.
According to the Atomico report, Europe is likely to remain a key player in the ICO industry in the next few years. The report notes that due to the demonstrated success of ICOs in 2017, larger firms are likely to be attracted to launch their very own ICOs. This suggests a notable mind shift in traditional modes of financing, as traditional institutions previously considered ICOs to be risky when compared to more traditional financing methods.
The US is also likely to enter the market more readily in 2018. Several reputable venture capital companies, including Union Square Ventures and Andreessen Horowitz, have already invested in ICOs.The Berlin-based Blueyard Capital has also begun to invest in ICOs.
However, Europe’s most reputable firms have not yet made their position clear on ICOs and whether they intend to invest in them in the future. ICOs offer users a different way of generating capital. By launching token sales, ICOs provide companies with an innovative way to generate funds quickly while offering investors a more interactive way of participating.
ICOs have become notably popular in markets that still remain largely unregulated. However, some countries have been imposing strict policies, and even bans, on the ICO investment method. China began to crack down on ICOs just a few months ago, while South Korea has also prohibited token sales. In addition, the US Securities and Exchange Commission (SEC), is likely to start monitoring the industry more closely, especially after certain fraudulent ICOs that have emerged in the last year.
Other notable countries that have made contributions to the ICOs industry are Germany and Austria. With Switzerland, these three countries have collectively raised $976 million. This number is far ahead of other European regions, including eastern Europe and the United Kingdom. Europe is also ahead of the UK in terms of the number of ICOs. While Europe has launched 162 ICOs, the UK has launched a mere 90.