Ukraine and ICO: A year in review
ICO is a kind of public offering (IPO), but on the cryptocurrency market. Instead of shares, tokens are used, and cryptocurrency instead of money. Launching an ICO is much easier: the barrier to entry is lower for both startups and investors, anyone can become one.
Nevertheless, you can not participate in ICO without preliminary preparation: it is necessary to calculate the technological, legal, marketing and mentor-economic aspects of any project. This is quite expensive, because you need marketing specialists, technicians, and advisors’ assistance.
The main reason why people participate in ICO is easy money. There are two problems: investors hope on vigorous growth of startups, they’ve invested in, and startups want to get good funding resources without searching for shareholders.
According to the results of EY study on the state of ICO in the world, Ukrainian projects have raised $30 million. Thus, Ukraine has reached the 16th position in the rating of ICO investment among all countries of the world.
The desire to get more investment is common for any startup. For this reason, Ukrainian projects are more focused on America, Switzerland or Asia. For example, Rentberry raises money as an American project, despite the fact that almost all the developers come from Ukraine. According to experts, about 20 Ukrainian startups have already been implemented or are in the process of implementation.
If we compare ICO with the market of venture investments, 87 contracts were concluded in 2016, which is one third more than in 2015. Data on the funds raised in 2017 is not yet available. The amount of investments from venture funds has reached $88 million. According to experts, the trend of greater demand for venture investments will continue for a long time.