ICO News: ICO funding down in April

The amount of money raised via ICO funding fell dramatically during April to levels not seen since August, 2017. During April, just $543.3 million, or £396.8 million, was raised through token sales.

ICO News: ICO funding down in April

This may seem like a lot but considering $1.4 billion (£1.02 billion) was raised in January of this year and $974.6 million (£711.8 million) was raised in March, numbers have fallen considerably.

2018 still looks set to be a record-breaking year for ICO funding, considering the fact that more than $4 billion has already been raised in the first four months and during the whole of 2017 only a little over $6 billion was raised.

ICO funding totals 2017-2018

April saw a notable decline in money raised via ICOs

However, April was still a notable decline in an otherwise booming economy. The reasons for the April slump aren’t clear.

Also, it’s important to remember that all data on ICOs is approximate. As ICOs grow in popularity it becomes increasingly difficult for statistic sites such as icodata.io (iNVEZZ’s source for this article) to keep tabs on exactly how much was raised.

Moreover, the total only includes ICOs and pre-sales that were completed during the month in question; it doesn’t include ongoing ICOs or unsuccessful or cancelled ICOs.

Additionally, January through to February 2018 saw a decline in the number of ICOs conducted but a sizeable increase in the amount of money raised. So, during these months, it was likely a handful of big-hitters, so to speak, that pumped up the numbers.

Conversely, in March more ICOs took place but the average amount of money raised was considerably lower. So, to suggest that ICOs are becoming less popular because the numbers fell in April, might not be accurate.

ICO average totals

Clampdown on ICOs

Many financial regulators, the world over, are clamping down on ICOs they see as thinly-veiled securities with many issuing cease and desist orders or even criminal charges on token sales they see as unlawful or fraudulent.

This may have had something to do with the April dip. The U.S. in particular has visited the subject several times already during 2018 and new regulation seems imminent.

Indeed, Centra launched an ICO earlier this year, only to have funds confiscated and all three founders arrested and charged with fraud, among things.

Centra first grabbed headlines thanks to an endorsement by former boxing champ Floyd Mayweather.

It will be interesting to see whether this downward trends continues, going in to May, or whether April was just a blip in an otherwise upwardly moving crowdfunding sector.

Watch this space.

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