History teaches some interesting lessons. After investigating the most successful ICOs of 2017 to see which factors helped them enjoy great prosperity, the Bitcoin Market Journal team has singled out 2018’s top five ICOs in the following categories:
- Total funding raised
- ROI of token sales
- BMJ Quickscore, a figure designed to quickly measure the trustworthiness of a token sale
As an added bonus, our team also shares some insight into some promising upcoming ICOs for the rest of the year.
|Top ICOs by Funding||Amount Raised|
|Dragon Coin||$320 million|
|Top ICOs by ROI||2018 Return|
|Top ICOs by QuickScore||Score|
Top ICOs By Funding
- Block.one/EOS: When measured in terms of the total money raised, the number one ICO was held by Block.one, which raised $4.1 billion for EOS, a scalable smart contracts platform.
- Telegram: The runner-up was Telegram, which raised $1.7 billion through two private sales that took place in the first quarter of this year.
- Petro: Venezuela held a sale of its oil-backed digital currency, Petro, which attracted $735 million from investors. The South American nation, which has suffered from sanctions imposed by other countries, held the sale in order to jumpstart economic conditions.
- Dragon Coin: The Dragon Coin ICO, which raised funds for an innovative platform run by British Virgin Islands-based Dragon Inc., drew $320 million.
- Bankera: Bankera, a blockchain-based banking platform, managed to attract $151 million through its digital token sale.
Top ICOs by ROI
Many ICOs managed to draw significant funding from investors in 2018, and some of these digital token sales quickly provided their token holders with some compelling returns.
- Zilliqa, a decentralized application hosting platform that leverages sharding, experienced a more than 1,800 percent increase in its token price between its ICO and the time of this writing on July 29, 2018, Coinist data reveals.
- Alphacat, a marketplace that provides robo-advisors focused on crypto investing, saw its tokens rise more than 1,500 percent since their private sale additional Coinist data figures show.
- Mithril, a decentralized social media platform that rewards its content creators, enjoyed a more than 1,000 percent gain in its token value this year.
- Bluzelle, a decentralized data ecosystem that gives users the ability to monetize their data, saw its tokens climb more than 150 percent this year.
- Loom Network, a decentralized platform for highly scalable games and decentralized applications, enjoyed a more than 140 percent increase in the price of its tokens so far in 2018.
Top ICOs by QuickScore
Of the five 2018 ICOs that had the highest BMJ QuickScores, three were already in progress, with the two starting in the coming months.
- Tip Blockchain, a third-generation blockchain platform designed to enable widespread adoption of digital currency, is holding an ICO that generated a score of 4.6.
- Ubex, a decentralized exchange that leverages artificial intelligence and smart contracts to help advertisers get their messages on the best possible websites, is having a token sale that also received a score of 4.6.
- Soundeon, a decentralized music platform that covers every aspect of the music industry from production to ticket sales, had an ICO that earned a score of 4.4.
- 4NEW, an eco-friendly blockchain solution that will run waste to treatment energy plants, is holding a token sale that has generated a score of 4.3.
- Citowise, a company that aims to create easily usable blockchain payment solutions, has an ICO that has received a score of 4.2.
Analysts Pinpoint Top Factors for ICO Success
When explaining what helped these token sales succeed, a good place to start is Media Shower’s ICO Manifesto for Founders. According to this document, the three most important factors in any digital token sale are:
Several analysts emphasized the importance of these key factors; for example, digital currency trader Marius Rupsys noted that the company’s “breakthrough promise” was important.
However, more than one analyst also stated that speculation and hype were major reasons why certain ICOs succeeded last year. Rupsys said:
“Most ICOs prices are really just speculation, as most of these ICOs did not deliver much from product side, traction or any other measurable result except marketing efforts.”
Iqbal Gandham, UK managing director for social trading platform eToro, stated that when it came to the most successful token sales:
“It was all PR driven and hype-driven, combined with a great timing of the market.”
Several analysts emphasized the key role played by regulatory compliance when explaining why certain ICOs succeeded.
One big reason Filecoin’s token sale succeeded was that it was a regulatory-compliant ICO that provided access to traditional investors, said Marouane Garcon, managing director of Amulet, a crypto-to-crypto derivatives platform that focuses on customer success and usability. Garcon states:
“It was successful because of the investors they targeted.”
Matthew Unger, CEO and Founder of iComplyICO, also emphasized the key role played by regulatory compliance, noting that many of the entrepreneurs holding ICOs in 2017 overlooked this consideration.
However, he anticipates a different climate this year, stating:
“We expect to see more projects that take due diligence, legal, compliance, and regulation seriously.”
Top 5 Promising ICOs of 2018…So Far
Keeping these considerations in mind, we have singled out three digital token sales scheduled for this year as having significant promise.
- Cypherium, a blockchain platform that leverages multiple levels of governance, aims to generate a solution that is permissionless and highly scalable. The company’s team is made up of former staff of Google, Amazon, and Microsoft. This company has been making headlines with its desire to make digital currencies more mainstream.
- Qravity, a decentralized platform for creatives, will allow various parties to work together to create digital entertainment and receive royalties for their contributions. The platform, which is based on Ethereum, harnesses smart contracts to ensure that royalty payments are distributed in a fair manner based on what value contributors add. This ICO starts August 12.
- NEX, which is short for Neon Exchange, aims to create a decentralized exchange on the NEO platform. The system, which aims to combine the best aspects of both centralized and decentralized exchanges, would provide both an off-chain mechanism for matching and an on-chain settlement layer. At the time of this report, NEX is waiting to receive regulatory approval from the Financial Market Authority (FMA) before holding its token sale.
- COTI, which stands for “Currency of the Internet,” is looking to develop a decentralized payments network that will rival traditional payment methods like Mastercard and Visa. To meet this objective, COTI plans to use a distributed ledger technology called the Cluster, which uses a Directed Acyclic Graph (DAG) like IOTA. In other words, it is designed to be far more scalable than the blockchain. The ICO starts August 15.
- Arround, which aims to be the first decentralized ecosystem harnessing augmented reality (AR) to engage audiences, could provide benefits to users, advertisers, and developers of content. Ideally, users will be able to enjoy an innovative new environment, advertisers will have an all-new way to reach their intended audience, and AR developers will have a whole new market for their content. The ICO begins September 15.
If you are looking to invest in ICOs during 2018, it is important to keep in mind the several key variables that frequently coincide with successful token sales.
While an ICOs People, Product, and PR are all crucial, these offerings can also be driven by factors such as hype and speculation, as well as how effectively a particular sale complies with existing regulations.
Before investing in any ICO, it is important to perform significant due diligence. One good way to conduct this research is by checking our initial coin offerings page, where you will find information about such offerings.
Another great way to get helpful information is to subscribe to the Bitcoin Market Journal newsletter, which contains the latest news and updates on the digital currency space.