By establishing a direct connection between the everyday investor and entrepreneurs, initial coin offerings (ICOs) were supposed to revolutionize fundraising for startups. As things have turned out, however, that revolution can wait. Per the latest statistics, ICOs have become vehicles for accredited investors to make bets in the market for blockchain and cryptocurrency startups. A significant portion of the $18 billion raised by blockchain startups this year has gone to “blockbuster sales” aimed at accredited investors rather than mom-and-pop investors. (See also: The Rise Of Initial Coin Offerings.)
According to data from Coinschedule, an ICO listing and cryptocurrency portal, the top five such private sales accounted for $2.6 billion of the total amount raised. The portal also found that 18% of overall ICO sales are through private sales and 37% were exclusively through private presales. Those numbers have come down from earlier this year, but they are still further confirmation of the increasing hold private players have on ICO blockchain projects. Earlier this year, research firm Token Data revealed that approximately 58% of all ICOs had raised their full fundraising amount through presale rounds, which is to say, by approaching private investors for funding instead of doing a public sale of their tokens.
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