CryptoDigest
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CryptoDigest

Ten years later, who’s leading the Blockchain and crypto space?

Image by WorldSpectrum from Pixabay

Blockchain technology has evolved drastically 10 years since its inception, We’d be surprised if it didn’t, so much so that the almost every other major country and government is investing in it.

Starting with Bitcoin, a peer-to-peer payment system, that has grown to become a good store-of-value with some analysts even comparing it to the likes of gold — dubbed digital gold.

Blockchain technology isn’t just limited to cryptocurrencies, thought leaders have come up with several use cases for the technology in scores of industry sectors such as Supply Chain and Logistics, Financial Services and even Gaming.

But what really propelled Blockchain into the spotlight is the rise of tokenized fundraising models like ICO, IEOs and STOs. All three models are starkly deviant from traditional fundraising methods like Venture Capital.

So who’s leading the charge tokenized fundraising revolution?

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During the month of May, The USA led the charge with a whopping 16 Blockchain and crypto projects offering a tokenized sale.

What’s surprising is that despite the looming regulatory risk involved in the USA with Initial Coin Offerings (ICOs) and Initial Exchange Offerings (IEOs), ICOs and IEOs make up for a majority of the projects from the country.

We suspect these projects restrict US citizens from taking part in the token offering of IEO and ICO projects to avoid any stints with the SEC.

There were only 3 Security Token Offering (STO) projects from the USA during the month of March. STOs, as the name suggests are “security offerings” albeit in a new digitized form.

Security Tokens represent ownership in the form of equity or stock, some pay back a share of revenue, sime guarantee a buy back of tokens after regular intervals. So you’d figure more companies will be adopting STOs in the US? As they pose little regulatory risk. But that’s not the case here.

The other major countries leading the space during May are UK, Singapore, China, and Estonia but there’s a problem here. These rankings are based on the number of token offerings, just by sheer numbers — it doesn’t give an idea about the success of these token offerings. So what’s a better way to assess token offerings?

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Let’s talk about funds raised. After all, what’s the point of token offering if not to raise funds?

A total of $2.65 billion has been raised by Blockchain and crypto projects -a staggering amount. Almost 59% of this amount or $1.55 billion was raised through tokenized fundraising models like IEOs, ICOs and STOs.

This will come as a surprise but despite what the graph says, China is the global leader in terms of funds raised. I’ll explain why the USA isn’t a global leader despite the graph clearly depicting it — a majority of the funds raised, approximately $ 1 billion, by US-based companies were through traditional Venture Funding and not token offerings.

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