ICO News; ICO Tally Crosses USD 4 Billion Threshold
No matter where you look, the totals for ICO fundraising in 2017 have been almost miraculous. The oft-cited CoinSchedule has the total proceeds from ICOs this year at nearly USD 3.7 billion. But another source, Autonomous NEXT cited in WSJ, places the tally at more than USD 4 billion, which is a milestone that catapults this asset class to a whole new level. As evidence of how far the category has come, total fundraising in 2016 stood at just USD 225 million.
Let’s take a look back at one of the most memorable deals of the year, Tezos, which is behind the stalled development of an autonomous blockchain.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Just because it was one of the biggest token sales, raking in some USD 232 million, it was far from the most successful. The latest development at the Tezos project, which has been stuck in neutral and whose proceeds have been tied up for months, a board member for the corresponding Swiss foundation has resigned, according to reports.
Swiss legal and management expert Guido Schmitz-Krummacher is out the door, only exacerbating an already precarious situation at the nonprofit. According to Reuters, he left amid “frustration” over the battle between the founders of the Tezos project and the head of the foundation. This is one former ICO for which it’s going to take a miracle to survive.
Falling on Deaf Ears?
The Tezos token sale is a stark reminder of the risks associated with early-stage projects. Regulators have been warning investors about the speculative nature of such deals. The SEC in recent days caused one startup, Munchee, to cancel its ICO after not registering with the Wall Street regulator, and soon after Chairman Jay Clayton reminded investors to perform their due diligence before backing a project. Nonetheless, the pace of deals, which is expected to surpass 500 this year, and the size of investments continues to break new barriers.