was successfully added to your cart.

The 6th ICO/STO Report published by PwC Stratetgy& and CVA

By January 21, 2020Articles, CVA in the News

The 6th ICO/STO Report published by PwC Stratetgy& and CVA

This week saw the publication of the 6th ICO/STO report in collaboration with PwC and Strategy&.

The key takeaways are as follows:

DEVELOPMENT OF GLOBAL CRYPTO MARKETS

  • In first half of 2019, global crypto ecosystem experienced solid growth, resulting in year-to-date peak market capitalization of approximately USD 370 bn by end of June
  • In mid-2019, total funding volume of token offerings considerably dropped from ca. USD 1’322 mn in May1) to USD 151 mn in June; until end of Oct, development continued to stagnate with average monthly funding volume of USD 171 mn (to compare: Average from Jan–May 2019 was USD 653 mn)

ICO / STO / IEO FACTS & FIGURES

  • Throughout first ten months in 2019, more than 380 token offerings have been successfully completed, raising a total of ca. USD 4.1 bn
  • Bitfinex (USD 1 bn), Kinesis (USD 194 mn) and GCBIB (USD 143 mn) were largest completed token offerings in 2019, jointly accounting 32% of total raised funding volume year-to-date

GLOBAL PERSPECTIVE TOKEN OFFERINGS

  • Throughout 2018 and 2019 (until October), the USA, Singapore, Hong Kong and the UK are ranked as leading token offering hubs worldwide (in terms of funding volume and number of completed offerings)
  • Further countries with relatively smaller domestic financial markets, as for instance British Virgin Islands, Cayman Island, Estonia and Lithuania, continue to be attractive crypto offering locations

RISE OF SECURITY TOKENS

  • In second half 2019, STOs did not experience any significant growth (in terms of funding volume and # of completed offerings), but continued to strengthen their general scope / relevance in global crypto token offering sphere (amongst other through corporate directly-issued STOs, comparable to private placements)
  • A large number of tokenization companies have been created recently and demonstrate a strong, well-established tokenization ecosystem; yet, the underlying infrastructure still requires a comprehensive upgrading (e.g., token exchanges)

THE RELEVANCE OF IEOs

  • Despite overall stagnating development of crypto / token offerings throughout June until Oct 2019, relative share of completed IEOs (in terms of # of all completed offerings) increased considerably
  • This development indicates a progressive institutionalization and establishment of this new Blockchain-based crowdfunding instrument that has emerged over the past 12-18 months

Read the full report here.