ICOs Average $8.55 Million in October as More Companies Issue Raises

The ICO market appears to have cooled from its summer highs, with the average raise bringing in $8.55 million for the month of October. However, the number of token raises has gone up dramatically, a sign that investors are becoming much more cautious about where they invest their money.

ICOs by the Numbers

A total of 97 initial coin offerings were issued in October with an average raise of $8.55 million, according to the highly addictive TokenData.io. These companies generated $829 million in funding, which translates into a median intake of $1.32 million.

October was the best month ever for total funds raised, but the median amount per token was well below the September rate of $2.28 million. Sixty-two ICOs were issued that month.

August saw 40 ICOs generate a combined $329 million. The average raise was $8.02 million, with the median around $3.o3 million.

The following chart provides an excellent summary of the past six months (all data and image courtesy of TokenRaise.io):

So far, there have been three ICOs to crack the $200 million barrier. They are Tezos ($230.5 million), EOS ($200 million) and Filecoin ($200 million). Four others have raised more than $100 million, including The Dao, which failed to overcome SEC scrutiny earlier this year.

Polkadot, which the author wrote about favorably, raised $144.4 million.

Investor Scrutiny on the Rise

Though we may be in ICO mania, investors are less keen on throwing money into just any old project. Gone are the days when a no-name ICOs with a typo-ridden whitepaper could generate $20 million. Investors are scrutinizing this market much more closely, which is making the authors at Hacked more cognizant of ICO reviews. Several of our members have commented that we need to get tougher on some of our reviews, including a deeper dive into the technical specifications of the token raise.

All this is to say that the ICO market is already in transition, and investors are taking notice. Recently, Binary.com founder Jean-Yves Sireau sounded the alarm on the ICO interview in an interview with Hacked.

“In my opinion most ICOs are worthless or scams, and investors will lose 98% of their money,” Sireau told Hacked. “Even if regulators do come up with regulations, it will be too little too late. In 1-2 years’ time there is going to be a flurry of lawsuits surrounding ICOs, especially in the US where law firms can organize class-action lawsuits. I think these lawsuits are what are going to tame the market, not regulatory action.”

In light of recent regulatory controversy surrounding ICOs, investors are now much more concerned with the type of token they are buying. Much of the regulatory risk stems from the so-called security token, which essentially represents shares in an entity. Utility tokens, on the other hand, function only partially as an equity in a network, and are instead used to access services.

Featured image courtesy of Shutterstock. 

Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi