September ICO Market Overview: Trends, Capitalization, Localization

Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.

The ICOmeter aims to provide the accurate and concise information about the development of the ICO market in the previous month, and its relation to the all-time statistics. The ICO market data is provided by ICObench, based upon the projects’ announcements recorded in ICObench database, which includes over 4600 ICOs since August 2015.

In the last 12 months, the ICO market has shown a fluctuating trend, reaching two peaks, both for the number of ICOs and total capital raised: in December 2017 and March 2018. Afterwards, the amount of resources gathered by ICOs began to decline, in spite of the temporary recovery in June 2018. Nevertheless, the number of ICOs launched during the last year is above the value of September 2017, with a trend often diverging from capitalization. This movement implies a reduction of the average availability of resources per ICO.

Data collected about ICOs which ended in September 2018 reflects the most recent situation for token issuing and crowdfunding. The general picture is quite gloomy: in spite of some clear ups and some robust trends, as the long awaited recovery of the market still seems to be nowhere in sight.

ICO Market 2017–2018: Number of ICOs and Funds Raised

In spite of the recent downturn of the market, businesses operating in the blockchain industry didn’t seem to lose the stimulus to promote new projects, trusting crowdfunding via ICOs as a means to retrieve capital. However, investors’ responses nowadays, are rather more tepid than how they used to be some months ago as could be seen on the graph above.

Considering data references back to September 2018, the variation in the number of ICOs concluded during the last month is slightly above that for August. The value of capital raised by all 155 ICOs ending in September fell by almost $325 million (with a fall of almost 46 percent, compared with the amount recorded in August). In addition to this, some data seems to indicate that promoting a token issuing event at the present time could bring results far from the success standard the market was used to at the end of 2017 – beginning of 2018. In fact, among all the ICOs ending in September, only 41 percent were able to raise at least $1, 24 percent achieved their soft cap, and only 2 percent got past their hard cap finish line.

Ethereum maintains its role as the leading platform for issuing tokens, with a share of almost 90 percent, thus the strong volatility could jeopardize the financial plans of many projects fueled by ICOs.

Considering the value of capital raised by ICOs during the last 12 months, after the peak of over $1.7 billion reached in March 2018, a downward trend has been clear since the end of spring 2018 and – in spite of a temporary recovery at the start of the summer – the tendency seems to have accelerated during the last few months, turning back the clock below September 2017’s values.

Countries and sectors: some stable trends

Although the ICO environment is growing to a slower pace, it seems, at least, quite stable referring to some features, such as its distribution in countries which offer some localization advantage, or its focusing on projects referring to the ‘core industries’ of the blockchain economy.

ICOs around the World

Funds raised by ICOs

The geographical distribution of projects which completed their funding process during September 2018 seems, in fact, to confirm a longer-lasting trend which identifies a leading group composed of the United States, Singapore, the United Kingdom, Russia, Switzerland, and Estonia, which between them contained the headquarters of about 50 percent of the ICOs concluded since 2015. The U.S., for instance, has maintained its outstanding leadership in the long run, in spite of the severe limitations preventing U.S. citizens from legally investing in any ICOs created, since 2016, by the SEC’s interpretation of the US Security Act of 1933.

Completed ICOs around the World

Funds raised by completed ICOs

In any case, monthly data needs to be considered carefully: the ranking references the amount of capital collected by ICOs and can vary enormously in the short run, due to the ‘nationality’ of some single ‘out of range’ ICOs, and to the presence of some tax havens attracting a large amount of resources. Also, even if September shows a slightly different ranking, the aggregate data confirms the presence of a strong leading group, distributed among a very small number of centers in North America, Europe, and South-East Asia.

Top 10 since 2015

Also in terms of sector composition, September confirms the predominance of some ‘core industries’, which refer to the field of IT and fintech (such as cryptocurrencies or platforms), while projects aimed at applications in sectors further from the crypto economy’s ‘backbone’ (such as charities or tourism) remain a minority.

Top 10 September 2018

A troubled month, even for the leaders

Even considering data for a relatively short period, usually a rather limited number of large projects mesmerize the market, however the success rate isn’t always directly proportional to the dimensions of the project. In September, the top 5 ICOs, in terms of the amount of capital, raised more than 35 percent of the funds invested in this market compared with the previous month when the concentration was over 57 percent, with two of September’s largest ICOs obtaining almost 22 percent of the available capital.

Nevertheless, none of the top performers were able to achieve its hard cap goal and, among them, the completion rate varied from 78 to 30 percent of the higher goal set. The fact that even projects attracting the larger share of funds raised during the month of September closed their ICO far from hitting their anticipated goals, could be seen as proof of the difficulties affecting all companies which base their funding on ICOs to attract investors generating ‘hype’.

A comparison with the success rates for September 2017 and September 2018 would confirm the concerns about the present market situation: considering the aggregate value of the soft caps indicated by the ICOs that ended a year ago, the goal set was achieved for 95 percent, while the aggregate hard cap was achieved for 29 percent (this data is available, however, only for ICOs which explicitly indicated a hard cap).

One year after the events are quite different: referring to the ICOs that were concluded in September 2018, the two values dropped, the hard cap goal achievements moved to 64 percent, and the soft cap goal fell to seven percent.

Comparing this result to August 2018, it’s possible to see a slight recovery only considering that the minimum amount requested to start a project was achieved by a larger share, as the aggregate soft cap covering rate rose from 44 percent to 64 percent.

The turbulence which engulfed the crypto-assets’ market during the last month didn’t stop the possibility for startups to finance their project through ICOs. In spite of that, it is possible to recognize the continuity of some trends, such as geographical and sector distribution, and this form of crowdfunding remains somehow robust, at least considering the number of ICOs concluded every month.

ICOmeter

Binance Opens Fiat-To-Crypto Exchange in Uganda

Binance Opens Its First Fiat-To-Crypto Exchange in Uganda

Exchanges

On Oct. 15, Binance announced the launch of its fiat-to-cryptocurrency exchange in Uganda. The world’s biggest digital currency exchange said users in the East African country are now able to complete full account verification starting immediately. Deposits and withdrawals of the local fiat currency, the Ugandan shilling, start on Wednesday.

Also read: Bitcoin After Death: The Perils of Sharing One’s Fortune

Exchange to Initially Support Trades Between Ugandan Shilling and BTC, ETH Only

“We are extremely proud to officially launch our first fiat-crypto exchange in Uganda,” said Wei Zhou, chief financial officer at Binance, in a press statement. “We have been diligently preparing for this exchange with our local partners since our team first visited Uganda in April 2018.”

Zhou also stated that: “This is only the first step in our efforts to use blockchain technology to support sustainable economic development in Africa, and we look forward to bringing more innovations to the region.”

The exchange will initially support trading of the local shilling unit with bitcoin core (BTC) and ethereum (ETH), Binance said. More trading pairs are to be added in the coming months, it detailed, adding that “users are exempt from trading fees during the first month.” The Ugandan subsidiary is capable of processing 1.4 million transactions per second, with 24-hour client support.

Binance is the world’s biggest digital currency exchange, with 24-hour volume of about $1.97 billion worth of BTC alone, according to data from Coinmarketcap.  The company has revealed plans to open fiat-capable exchanges in Liechtenstein, Malta and Singapore. Until now, the exchange had been optimized for crypto-to-crypto trades only.

In Uganda, cryptocurrency and blockchain adoption and development continue to see growth. That’s despite warnings by the Bank of Uganda against the use of unregulated currencies in the form of bitcoin and other digital coins. The country of 44 million people is home to various blockchain conferences, associations and communities, with support at Cabinet level.

African Investors Welcome Binance’s Ugandan Presence

Investors in Africa have cheered Binance’s move into Uganda. “This is great news!” Michael Kimani, a leading Kenyan crypto proponent, tweeted.

“(It) will spark a race across African countries on setting up [a] favorable environment for cryptocurrency trading against African currencies. Muhimu (vital) for cross border trade, intra-African trade, online payments, remittances, trading, investing…” he wrote.

Binance Opens Its First Fiat-To-Crypto Exchange in Uganda

Binance’s presence in the East African nation is expected to boost financial inclusion in a country where only 33 percent of citizens use registered financial accounts. But this is a place where bitcoin looks likely to flourish unhindered. Some shops and restaurants in Kampala – Uganda’s capital – now accept bitcoin as a means of payment.

Ugandan President Yoweri Museveni has spoken positively about blockchain technology – but not cryptocurrencies. He told the Africa Blockchain conference organised by the Blockchain Association of Uganda in Kampala in May of the need “to look for a new technology of enabling things to move faster and new systems that go with it.”

His central bank governor Emmanuel Tumusiime-Mutebile had apparently spoken to the contrary in an earlier address to the same conference. Mutebile accused blockchain technology of lacking the necessary support to sustain a currency. But Ugandans, mostly professionals, have taken a particular liking to virtual money, bitcoin especially.

What do you think about Binance’s move into Uganda? Let us know in the comments section below.


Images courtesy of Shutterstock.


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Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, October 15

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

Stable coin Tether is being cited as one of the main reasons for the spurt in crypto prices that pushed total market capitalization above $221 billion on Monday (UTC time), but it was not a new issuance of Tether that was the catalyst for upward market movement.

There was news circulating about Tether (USDT) being delisted from various exchanges. This led investors to dump USDT, which lost its peg to the dollar and fell to as low as 85 cents, before recovering part of its earlier losses.

Anxious investors converted their USDT to other cryptocurrencies that led to a sharp rally. Additionally, the surge in prices would have triggered stop losses on the short positions, adding fuel to the rally.

It will be interesting to watch whether cryptocurrencies hold on to higher prices or give up recent gains in the next few days. Let’s watch the critical levels that will indicate a trend change.

BTC/USD

Bitcoin skyrocketed to $7,550 intraday, but the bulls are struggling to hold the gains. This shows liquidation by traders who are stuck at higher levels.

If the bulls close (UTC time frame) above $6,850 levels, it will be a positive sign and will invalidate the bearish descending triangle pattern. $7,413–$7,600 might act as minor resistance, above which, the rally can extend to $8,400.

The next couple of days will confirm whether the breakout is genuine or a sucker’s rally. For now, traders can continue to hold their long positions with the stop loss at $5,900.

If the bears turn around and break below the support zone of $6,075.04– $5,900, the BTC/USD pair will become extremely negative and can nosedive to the $5,450 and $5,000 levels.

ETH/USD

Ethereum is stuck inside the $192.5–$249.93 range. Today’s rally came close to the overhead resistance but could not break out.

A breakout and close (UTC time frame) above $250 can attract buying, pushing prices to the next resistance zone of $300–$322.57. If the bulls scale this zone, a new uptrend is likely.

The ETH/USD pair will resume the downtrend if it breaks below $167.32. We do not find a buy setup at current levels.

XRP/USD

Ripple is attempting to pull back after taking support at the 78.6 percent retracement level in the recent rally.

Today, the pullback faced resistance at the 20-day EMA, which has started to slope down. Currently, the price is close to the $0.4255 level.

The XRP/USD pair will become negative if it breaks below the $0.37 level. Such a move might retrace the complete rally, plummeting prices back to $0.26913. Traders should wait for a reliable buy setup to form before initiating any trade.

BCH/USD

Bitcoin Cash held the support line of the symmetrical triangle for the past four days and launched itself higher today, reaching close to the resistance line, where sellers emerged.

Though a symmetrical triangle is a continuation pattern, sometimes it acts as a reversal pattern. A breakout and close (UTC time frame) above the symmetrical triangle will signal a change in trend that can result in a rally to $660 and $880. Therefore, traders who are holding their long positions can keep their stops at $400.

Any break of the triangle and a move below $400 will be a negative development that can drag the BCH/USD pair to $300 or lower.

EOS/USD

EOS has held the $5 level for the past four days. Today’s rally stalled just above $6. The key level on the upside is $6.829, above which we can expect a new uptrend to begin.

A break of $5 can result in a drop to the support zone of $4.4930–$3.8723. Therefore, traders can keep a stop of $4.90 on their long positions.

Above $6.8299, the EOS/USD pair can climb to $9 and higher. Until the breakout, volatile trading inside the range will continue.

XLM/USD

The rally in Stellar broke out of the overhead resistance of $0.24987525 and the downtrend line of the descending triangle. However, the bulls are finding it difficult to sustain the higher levels. Currently, the price is back below the downtrend line and the overhead resistance of $0.24987525.

Traders can watch the $0.27 level on the upside. If the XLM/USD pair closes (UTC time frame) above this level, it will invalidate the bearish pattern, which is a bullish sign.

If the price remains below the $0.25 level, we might expect the range bound action to continue. The bearish pattern will complete on a breakdown of $0.184. Any long positions should be closed if the bears break and close below $0.165.

LTC/USD

Litecoin continues to trade inside the $69.279–$49.466 range. The bulls have successfully defended the bottom of the range for the third time. This becomes a critical level to watch on the downside, as a break below this will resume the downtrend, plunging the digital currency to $40 or lower.

On the upside, the level to watch is $69.279. If the bulls close above this resistance, it will indicate the formation of a triple bottom pattern. Therefore, we suggest traders initiate long positions on a close (UTC time frame) above $70.

The rally can carry the LTC/USD pair to $94, which will act as major resistance. If this level is crossed, we can expect a new long-term uptrend to begin.

ADA/USD

Though Cardano traded below the $0.073531 level for the past four days, the bears could not cause any major damage.

Today, the  ADA/USD pair rallied sharply and came close to the overhead resistance of $0.094256 where sellers stepped in.

A breakout of $0.094256 can carry the digital currency to $0.111843, which is likely to act as a major resistance. On the downside, if the bulls maintain the price above $0.073531, the consolidation might continue a while longer. A break of the $0.0685 level will attract further selling and result in a retest of the critical support at $0.060105.

XMR/USD

Monero has held the psychological support of $100 for the past four days. Today, the digital currency rallied close to the overhead resistance at $128.65 where it faced selling as on previous occasions.

If the XMR/USD pair breaks out of $128.65, it is likely to reach the overhead resistance zone of $142.71–$150. A break of the $100 level can result in a drop to the lower support of $81.

If the prices sustain above $107.80, the digital currency might remain range bound for a few more days.

TRX/USD

TRON again broke out of the overhead resistance but failed to sustain higher levels. This shows profit booking and a lack of buying above the range.

The TRX/USD pair is back inside the $0.02815521–$0.0183 range. It will pick up momentum after it sustains above the range.

The traders can expect an up move to the $0.0415 level if the price closes (UTC time frame) above $0.02815521. If the bulls fail to achieve the breakout, the digital currency might extend its stay inside the range for a few more days.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.