普华永道-2018年1-5个月数字货币（ICO）销售额达137亿美元-2018.6-11页

ICO Report Summary – June 2018

Core Content

This report provides an analysis of the Initial Coin Offering (ICO) landscape up to May 2018, highlighting the evolution of ICOs since their emergence and the regulatory developments in key markets. It outlines the current state of ICOs, their impact on traditional funding models, and the implications for investors and entrepreneurs.

Main Points

Overall Situation

• Since the last report in December 2017, ICOs have regained momentum, with a significant increase in both the number and volume of successful ICOs in 2018.
• In the first 5 months of 2018, 537 ICOs raised a total of USD 13.7 billion, surpassing the total volume of all pre-2018 ICOs.
• Large-scale ICOs like Telegram (USD 1.7 billion) and EOS (USD 4.1 billion) have introduced the concept of 'ICO Unicorns', signaling the maturation of the sector.

Top ICOs by Funding

Key ICO Hubs

• The USA, Switzerland, and Singapore have remained the leading ICO hubs, with the UK and Hong Kong gaining significant traction in 2018.
• Cayman Islands and British Virgin Islands are notable for hosting large-scale ICOs like EOS and Telegram.
• Estonia, Lithuania, and Israel are emerging as new ICO hotspots despite not being traditional financial centers.

Regulatory Landscape

• Three regulatory models are emerging:
  • USA: Security-driven, with strict rules by the SEC and FinCEN.
  • Europe: Balanced approach, with Switzerland leading.
  • Asia: Binary model, with Singapore and Hong Kong as key players.
• Switzerland is known for its favorable treatment of cryptocurrency businesses and its role as a 'Crypto Valley' hub.
• Singapore has issued guidelines and is focused on regulating activities rather than virtual currencies directly.

Impact on Traditional Funding

• ICOs are increasingly displacing traditional venture capital (VC) funding, especially in blockchain and tech startups.
• Hybrid models combining VC and ICO are becoming popular, offering both professional validation and community support.

Success Rates and Risks

• Around a third of all announced ICOs successfully close.
• Smaller ICOs face higher risks of not delivering on promises or dissolving.
• Post-ICO, most successful projects continue development, though some face legal or governance challenges.

Key Take-Aways

• USA remains a top ICO destination, with a centralized securities regulation framework.
• Switzerland continues to be a key hub due to its favorable regulatory environment and established ecosystem.
• Singapore is gaining ground with its clear regulatory stance and support for blockchain innovation.
• The UK and Hong Kong are emerging as significant players in the ICO market.
• Cayman Islands and British Virgin Islands host large-scale ICOs.
• ICOs are becoming more structured and transparent, with mechanisms like funding caps and lock-up periods.
• Investors are more cautious, validating ideas before committing funds.
• Founders benefit from both "smart money" and community support but face governance and transparency risks.

Best Practices

• Structured fundraising rounds with funding caps increase transparency and accountability.
• Combining VC and ICO can help diversify funding sources and validate projects.
• Pre-sale phases with targeted investors can reduce the need for aggressive promotion.
• Transparent communication during and after the ICO is crucial for investor trust.
• Careful legal setup and jurisdiction selection is essential for compliance and governance.
• Staggered fund releases and voting mechanisms ensure appropriate use of funds.
• Cybersecurity should be prioritized both before and after the ICO.
• Community building and ecosystem development are more important than pure tech innovation.

Contact Information

• Daniel Diemers – Blockchain Leader EMEA
• Henri Arslanian – FinTech & Crypto Leader Asia
• Grainne McNamara – Blockchain Leader USA
• Günther Dobrauz – Leader PwC Legal Switzerland

For further insights, please contact the authors of this report.