Initial Coin Offerings have attracted more funds in the first half of 2018 ($12 billion), than in the entire 2017 ($7 billion), according to a report by the independent fintech analytics firm Autonomus NEXT. While this may sound amazing, there are two major projects whose contribution is nearly half of the YTD figures - EOS ($4.2 billion) and Telegram ($1.7 billion). The research team’s methodology apparently includes non-public projects as Telegram opted out of raising funds after two pre-sale rounds.

More capital in ICOs, but the field is tough

Even discounting the two massive projects, the pace of ICO funding is still in line with last years’ totals. That said, unless you operate an already established brand, your chances of attracting investors’ attention are slim, according to the paper. Approximately 50% of all ICOs failed to raise adequate funds and have ceased operation. Additionally, as much as 20% of all white papers are classified as varying degrees of fraud.

With over 300 funds, the small ones face a challenge

A total of 312 funds are being tracked, with assets under management (AUM) of $7.5-$10 billion. The paper finds a correlation between the price movements of the major cryptocurrencies and the new fund openings, which is to be expected. A more interesting aspect is that despite the major downtrend in Bitcoin (and most cryptocurrencies) in the first part of 2018, the pace is relatively steady.

When it comes to the distribution by investment strategy, the majority of funds (56%) go to the Liquid Venture category, which features those having a longer-term approach. Here is the breakdown:

Note the relatively tiny amount of quantitative funds (4%). One possible explanation is the existing correlation between a lot of the popular coins. This leads to another conclusion reached in the paper - while the bigger funds have the ability to survive in bear markets, those with assets under $25 million will face an uphill battle.