Chinese Token Offerings Raised a Massive $1.18 Billion in the First Half of 2019
- When it comes to the number of token offerings USA is still the global leader.
- While IEOs and STOs are rising in numbers, ICOs are dropping with the whopping 74%.
Despite the constant reports about China’s repression on cryptocurrency-related actions, Chinese token offerings did raise the massive $1.18 billion in the first half of 2019. This amount accounts for 33.2% of the funds that have been raised from token sales globally ($3.39 billion).
As reported in InWara’s Half-Yearly report, 583 Token Offerings were launched during the first half of 2019 and Chinese token projects have raised the most earnings, despite being fourth in terms of sheer numbers (30). When it comes to the number of token offerings the USA is definitely the global leader with 66 offerings, but that this does not translate into higher total earnings.
Second in the number of token offerings is Singapore with 52, making it the best performer from the Asia-Pacific region. This should be no surprise as Singapore is considered to be the blockchain and crypto hub of Southeast Asia due to the jurisdiction’s investor-friendly laws, great education and internet network. The top 3 is completed by the United Kingdom with 50 offerings.
Other important data
InWara’s statistical data shows that the biggest investor attention has been caught by the trading and investing sector (including crypto exchanges) which accounts for 37% of the total funds, or $1.25 billion. Second in this aspect is the core Blockchain technology which raised 10% ($338 million), followed by Financial Services with 7% of the total funds.
Another interesting comparison provided by inWara is the number of token offerings year-over-year. And while IEOs and STOs are rising in numbers, ICOs are falling by the whopping 74%. The contrast between H1 2018 and H1 2019 is stunning as ICOs have decreased from 1570 to just 403.
In H1 2018, IEO was still a new blockchain-based investment vehicle and by now has increased by 6000%, making it to 123 projects, which cumulatively raised $1.63 billion. STOs are also rising in numbers – from 49 in 2018 to 57 this year.
The supremacy of China in token funding was mainly caused by Bitfinex’s IEO LEO, which raised $1 billion. Gate.io is second with $329 million, while Binance raised $27.7 million.
When looking at the YOY growth statistic, STO projects are actually improving with more than 50% and raised $419 million.
In addition, China is a global leader in terms of blockchain patents by filling number, and much of the production and utilisation of mining equipment is also focused there. So despite the frequent news about anti-crypto regulation, the country has much to lose if it does not embrace the innovative technology.
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The team behind Multichain confirmed that their CEO was detained in China on 21 May, and that all of his electronic devices were confiscated by the local police.
- The CEO’s sister moved the project’s remaining funds to wallets under her control on 9 July, and several days later was also detained by the police, leaving the team with no funds.
- A new 13-count superseding indictment has accused Sam Bankman Fried of bribing one or more Chinese officials in order to unfreeze accounts connected to Alameda.
- In early 2021, Chinese authorities froze certain Alameda accounts on two of China’s largest crypto exchanges”, which reportedly held more than $1 billion worth of crypto assets.