Multiple large-scale token sales indicate that ICOs are not yet dead.

Initial coin offerings (ICOs) were all the rage in 2017, but faded away with the bubble burst in 2018. However, recent regulatory developments suggest that ICOs still have a place in the crypto space and may once again become a mainstream tool for fundraising.

The German Federal Financial Supervisory Authority has recently approved an ICO sale by Fundament Group, a Berlin-based blockchain startup, planning to raise 2.5 billion euros (2.78 billion US dollars). Retail investors are allowed to participate in the sale without investment limits under the authority's approval.

German Financial Regulator Approves 2.5 Billion Euro Token Sale

The project aims to enable participants to invest in commercial real estate through tokens. According to a report, the company plans to conduct the token sale without intermediaries like banks to minimize issuance costs. Investors can acquire tokens using Bitcoin, Ethereum, US dollars, or euros.

Due to regulatory oversight on token issuance, investors are required to undergo KYC. Additionally, their ERC20 tokens will allow holders to receive annual dividends of 4-8% on their investments.

On July 1st, the U.S. Securities and Exchange Commission approved a $28 million ICO issuance by Blockstack. The company is building a decentralized computing network and application ecosystem, with permission to raise up to $50 million annually.

Prior to this, the SEC had also approved live streaming platform Younow to launch Props Token worth $187 million. Users can earn tokens by creating, supporting creators, and actively engaging, with holders receiving virtual items and discounts. As the platform grows, the tokens will become more valuable.

Russia Passes Proposal to Legalize Crowdfunding

According to a June report by ABM, the Russian Ministry of Finance is drafting a bill on the circulation of cryptocurrencies in the Russian Federation, discussing the opening up of cryptocurrency trading. A separate bill on ICOs will also be proposed as part of Russia's crowdfunding laws. Despite President Putin setting several deadlines, authorities have been delaying the adoption of their major crypto-related legislation.

Aside from Russia, many other countries have passed legislation to some extent, opening up crowdfunding. For instance, a law signed by Belarus last March legalized cryptocurrency-related activities, including issuance, storage, and trading of cryptocurrencies.

Estonia, with its friendly crypto legislation, has attracted many startups, with a significant number of ICOs actually registered in the country.

Can ICOs Make a Comeback?

According to data from the rating platform Icobench, over 90% of ICO projects have ended, 6% are ongoing, and around 2% are upcoming. A total of 5,639 projects come from 25 different industries, with most projects aimed at creating new platforms or providing cryptocurrency-related products and services.

With 701 ICOs and $7.4 billion raised, the U.S. ranks first. Singapore, the UK, Russia, and Switzerland also make it to the top five.

IEOs continue to be popular among investors, raising over $1 billion in May. A report indicates that by the end of June, 182 projects raised $1.597 billion, with a success rate of over 60%. About 90% of the funds are concentrated in the top five platforms.

Facebook's Libra project has prompted governments worldwide to take a closer look at the cryptocurrency space. However, moderate regulation may actually benefit the long-term ecosystem development of cryptocurrencies, turning crisis into opportunity.

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