Dividing ICO Categories

Are you also wondering how the ICO landscape is divided and which category has raised the highest amount of money so far? For this week’s trends in blockchain we’ll show you the distribution of ICO projects per category. We also give our opinion on why the top three most sold isn’t the top three most organized. Find out in this week’s article.

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During the BlockchainTalks event last week we saw a presentation that showed all categories in which blockchain is implemented already. We then started wondering how the ICO landscape is divided at this point. We also were wondering which category has raised the highest amount of money so far. For this week’s trends in blockchain we’ll show you the distribution of ICO projects at this point and we’ll have a look on the most profitable ones as well.

Distribution of ICO categories

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ICO’s by category

According to ICOwatchlist the biggest category in which ICOs are being held is the financial sector. 12.6% of the ICOs were in finance. The reason for this is probably that blockchain was initially invented to replace the financial industry. A lot of blockchain enthusiasts share a financial background and therefore see opportunities regarding that particular market.

The second largest category within blockchain start-ups is payments/wallets. They take up 6.2% of the total number of ICOs. This category is closely linked to the finance sector. We think there is a rising demand for wallet projects because more tokens are being invented, created and distributed to new clients. These new clients will all encounter different problems, difficulties or restrictions during the process. They’ll then solve these inconveniences in their own way, resulting in a lot of wallet projects.

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ICO’s by category

Third on the list we’ll see the commerce/retail sector. Commerce/retail is just 0.4% short on the wallets category at 5.8% of the number of ICOs. Definitely not unexpected to be this big since commerce/retail has a lot of implementation possibilities for blockchain. There is demand for decentralization and transparency. Customers need this in order to make sure that the pricing of their products is fair and to break the monopoly that big retailers have right now.

Big Spenders

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Invested capital

Like you’ve probably already seen in the introduction of this article there is a difference between the number of projects that are being organized and the amount of money that is being raised. The only sector that has a lot of projects and that is also capable of raising money is finance. Finance has raised 5.2% of the total supply. We guess that this is probably also because large parts of the blockchain community have an financial background.

The second largest group of ICO projects that successfully raised funds are blockchain platforms. Blockchain platforms take up 19.3% of the total money supply. This category is mainly interesting for investors because of the ecosystem within these platforms. Providing an ecosystem ensures that the token will be used after the project completes its ICO.

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Invested capital

The category that accumulated by far the most investments is network/communication. The network/communication projects attracted an astonishing 53.2% of the total supply! The advantages that blockchain offers like robustness, trust and processing performance seem to be the perfect match for this specific market. Deloitte even analysed the possibilities for blockchain within telecommunication. You can find the research of Deloitte here.

We hope that you’ve enjoyed our article about the separation of different ICO categories. Do you agree on our analysis, or do you think that there is another explanation for this phenomenon? Let us know in the comments!

As always, have a Cryptastic day

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