PwC: 100 ICOs Are Launching Every Month In 2018, Generating $13.7 Billion

PriceWaterCoopers or PwC, which is one in the group of Big Four auditors alongside KPMG, Deloitte, and EY, recently reported that 537 initial coin offerings (ICOs) that were conducted in the first 5 months of 2018 generated $13.7 billion.

The report also cited Daniel Diemers who is the head of Blockchain EMEA at PwC Strategy and who found that ICO activity has actually increased in 2018 despite the 70% correction of the cryptocurrency market.

However, the new report is entitled “Initial Coin Offerings: A Strategic Perspective” and reads the following:

“[Researchers] highlighted continued growth and popularity of ICOs globally in 2018, with over 537 ICOs conducted in the first five months of this year, raising a combined total of $13.7 billion USD – more than all ICOs which took place before 2018 combined. Going forward this quarterly report on global ICO activity will continue to track the changes and developments in the industry as it undergoes continuous expansion and substantive change.”

The majority of the funds received by 537 token sales in the first and second quarters of 2018 most likely came from investors that already held large sums of Bitcoin and Ether, which is the native currency of the Ethereum network.

In order to invest in tokens, investors are required to send BTC and ETH to the project operators. Contrary to the claims of many analysts and investors, token sales demonstrate an endless cycle in the market of fund circulation. While it is true that ICOs dump big amounts of BTC and ETH to the market, these funds are bought again by investors who then fund other ICOs with BTC and ETH.