by Syed Shoeb, Inwara
Note: This is not financial advice. InWara does not promote/demote any company/ICO.
Blockchain adoption has accelerated in the last few years, with the finance sector offering some of the strongest use cases for blockchain technology. Despite technological challenges and regulatory hurdles, the blockchain technology adoption is consistently increasing in the past few years.
InWara has studied the market and companies with blockchain technology both with or without an ICO. This study reveals significant trends and offers the users insightful analysis based on institutional-grade ICO/VC data required for due diligence.
This study covers
Market Trend Analysis
Private Funding Activity
Mergers and Acquisitions
Finance sector dominates with over 957 ICOs to date, of these not all were successful in raising capital to reach their respective hard caps. Within the sector, Financial Services have seen the largest number of successful ICOs at 137.
Financial services remain the most popular in the Finance sector in ICOs with novelty offerings gathering momentum in 2018. Overall, Financial services accounted for over 40% of total ICOs in the Finance sector.
Capital raising takes a breather with the threshold average hardcaps witnessing a marginal decline
Decoding Tokenomics in finance sector
The finance sector raised $2.4 billion in 2017 and $1.9 billion during YTD 2018. The mean funds raised remained relatively stable at $40 million for 2017 & during YTD 2018.
Interestingly, the mean and median funds raised differ by over 10% indicating that the sector is bearing witness to big-ticket projects.
Top Fundraiser ICOs:
Dragon Coin (DRG)
Dragon is a blockchain-based company that provides the payment solution in the entertainment industry in a more secure, transparent and cost-effective way.
PumaPay is a free, open-source, blockchain based payment protocol featuring the unique architecture of Pull Payment.
Quoine’s Liquid platform is a single globally-sourced trading platform (world book) with an associated suite of services (Prime brokerage). Combined, these produce the highest level of liquidity in the world?-?allowing any individual to access the opportunities and wealth the new crypto economy offers.
Returns on investment: insurance ICOs in dangerous waters
Despite the volatility in the broader market, investments, cryptocurrency & financial services based ICOs have managed to post gains for Q3, 2018. Unfortunately, insurance ICOs have seen a double dip downward trend.
Market trend analysis
This section covers news and events affecting the market:
Fidelity Investments case
Intercontinental Exchange’s Bakkt’s crypto institutionalization
Google’s take on cryptocurrency
Private funding activity
Private investors have consistently backed the finance sector with the number of investment rounds up by 65% during 2018. Please note that InWara tracks both total capital raised as well as single rounds of investment. The total capital raised in the private investment round crossed $1 billion in Q3 2018. Overall, Private funding has seen significant growth of over 150% during YTD 2018 as compared to 2017.
Among the private investors, VC involvement in pre-sale and private sale stages dominate with a few plays in Main sale stages as well.
Top 10 active Venture Capital investors in the finance sector
Focused Blockchain funds have been shopping in 2018 with large number of investments made by Digital Currency Group & Blockchain Capital.
Mergers and acquisitions: finance sector acquisitions up by 61% in 2018
Analysis of blockbuster deals like Coinbase acquiring Earn.com is covered in this section.
More details in the sector report!
This section covers the number of active ICOs, failed ICOs and concluded ICOs. The section also provides a detailed analysis of success and failure rates. It also does an analysis of the founder?-?age, backgrounds, experience, etc.
Over 80% of ICOs are led by management team under the age group of 35–40 years across all sectors but the finance sector seem to have been led by relatively younger management.
To sum it up
Future seems optimistic despite the slow down in 2018. All it really takes is a step back from the charts and an education on the underlying fundamentals to realize that digital assets have been beaten without cause. However, a bounce back is imminent.
To read more of the report, contact [email protected]