Chinese Token Projects Raised $1.18 Billion in 2019’s First Half
Chinese token offerings have raised a whopping $1.18 billion in the first half of 2019, accounting for 33.2% of the total funds ($3.39 billion) raised from token sales, despite the country’s crackdown on crypto-related activities.
According to data from InWara, out of the 583 token offerings launched during the first half of 2019, the U.S. has been the global leader with 66 token offerings, while Chinese token projects, though coming fourth in terms of sheer numbers (30), have raised the most funds.
Singapore, knowns as the blockchain and crypto hub of Southeast Asia for its investor-friendly laws combined with high levels of education and internet penetration, is second to the U.S. with 52 token offerings, the highest number in the Asia-pacific region.
The report points out that trading and investing (including crypto exchanges) sector has attracted the majority of the investors’ attention, raising $1.25 billion or 37% of the total funds; next comes core blockchain technology startups, which managed to raise $338 million, or 10% of the total funds.
With the rise of IEO (initial exchange offering) and STO (security token offering), ICO (initial coin offering) investing has been declining since 2018. Compared to the first half of 2018, the number of ICO projects have depreciated by over 74% from 1,570 to 403 in H1 2019; the funds raised by ICO projects are observed plummet to $1.32 billion, a sharp decline of 91% YOY.
In contrast, the IEO rates are growing, registering an over 6000% rise to 123 projects, with $1.63 billion raised growing by 5300% YOY. The number is expected to rise with time as the ICO further declines. China’s dominance in token funding was primarily occasioned by the Bitfinex’s IEO LEO, which has raised $1 billion. On the heels of Bitfinex comes Gate.io having raised a whopping $320 million, and Binance raised $27.7 million.
On the other hand, STO projects raised $419 million, registering a YOY growth of more than 50%.
China has established itself as a bitcoin mining giant and currently leads the world in blockchain patents by filing number. Bitcoin rally starting from this April has fueled the market sentiment, particularly the Chinese market, which is warming up to bitcoin again.