The study showed that while the numbers of ICOs launched went down during the first quarter of 2018, the numbers quickly bounced back, making gains in the second quarter.
The report shows total revenue for 2018 being pegged at $13.7 Billion, compared to revenue collected from 2013 to 2017, which reached a total of $7 Billion in revenues collected through ICO.
The first few months of 2018 registered 537 ICOs so far, compared to last year’s total of 552.
The US, Switzerland, and Singapore remain key locations for ICOs, while the UK totaled 507 ICOs and Hong Kong, 223, rounding out the top 10 ICO countries of the year so far. The leading ICO countries this year by funding volume are the Cayman Islands, British Virgin Islands, and Singapore, in a contrast to last year, where most funding was concentrated in the US, Switzerland, and Singapore.
The study says the ICO model is starting to disrupt venture capitalism, the traditional means of funding across most industries, especially in the tech sector. Many new companies connected to blockchain projects and digital ledger technologies often go the ICO route.
The report also says that after a hype-cycle in 2017, ICOs became more mature and established in 2018.
The study also identified three models of ICO regulation. The US model considers tokens as securities and requires registration with the US Securities and Exchange Commission. The Swiss model considers tokens as assets and regulation are dependent on token functionality, whether as a payment system, utility or security token, and the Singaporean model, where the token is classed as an asset and the ecosystem and activities are the ones regulated instead of the cryptocurrency.
The PwC report also seems to indicate that when it comes to promotion of ICOs, less is more. The report also says companies pondering an ICO should focus more on their pre-sale phase with targeted investors. The report concludes that over-promotion of an ICO can dilute a project’s credibility to the public.