![]() ![]() ![]() ![]() "People are getting caught up in the vision and it's going to take 10 to 20 years to build out. "We're in a very frothy phase of ICOs," Naval Ravikant, a venture partner at digital currency firm MetaStable Capital, told CNBC. On May 31, the web browser Brave conducted an ICO of its "Basic Attention Tokens." In less than 30 seconds, it raised $35 million, selling out. More importantly, investor appetite for ICOs is beyond ravenous. And the 45 ICOs this year aren't far behind the 62 IPOs (an initial public offering of a stock) we've had. So far in 2017, ICOs have raised more than $200 million, about double what ICOs raised in all of 2016. In the same period, blockchain startups drew $118 million in venture capital. According to CB Insights, ICOs raised $69 million in the first quarter of 2017. ICOs have begun to rival venture capital in the realm of blockchain-based startups. Gnosis is a startup that wants to use blockchain technology to build a prediction market business. Within a week the Gnosis token had tripled in value, from $30 to $90, giving the company a $1 billion valuation. On April 25, the Gnosis ICO raised $7 million in the first 30 seconds and $12.5 million within 10 minutes. But these tokens, or "coins," are custom cryptocurrencies offered by startups to raise capital for their business. ICOs are built on the same blockchain technology that powers Bitcoin. In fact, the pace of ICOs grew last year from a few per month to 13 per month by December. Initial coin offerings (ICOs) have become shockingly popular in a very short time. ![]() Save my name, email, and website in this browser for the next time I comment. Sign me up for the Money Morning newsletter Your email address will not be published. Or to contact Money Morning Customer Service, click here. Comment on This Story Click here to cancel reply. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |