According to a report published by cryptocurrency analytics firm One Alpha, Israeli blockchain startups managed to raise $606 million of investments since the beginning of this year. This means that the country’s ICO industry has been on the rise, given that the figure was just $568 million for the whole of last year.
The researchers from One Alpha have figured out that there are 140 blockchain-focused companies in Israel, wherein more than 60% of these are ICOs. Israeli startups managed to attract $1.3 billion in total, 88% of these funds being raised through ICOs.
This year alone accounted for $606 million worth of investments. The largest number of ICOs took place during Q2 2018, whereas Q1 turned out to be the most prolific one in terms of fundraising ($315 million).
One Alpha notes that in 2017, just less than 20 ICOs in total raised $586 million. Since the start of 2017, the country saw a steady rise both in the number of ICO projects and the amount of funds raised overall.
According to statistics provided by One Alpha, last year saw the launch of 350 ICOs worldwide. By now, however, this number exceeds 800. Notably, ICO funding increased from $6 billion to $20 billion in the course of two years.
The largest ICOs in 2018 are the following: EOS ($4.2 billion), Telegram ($1.7 billion), TaTaTu ($575 million), Dragon ($420 million) and tZero ($328 million). ICO sector still attributes for less than 10% of the global venture capital funding, however.
It is also mentioned in the report, that 2017 was a record-setting year for crypto funds globally, as 194 funds were opened that year, while the first eight months of this year saw the opening of yet another 136 new ones.
Yaniv Feldman, CEO of One Alpha, said that the prevailing bear market of the past year has provided “much-needed” relief to the sector, as it has brought valuations down to a “sensible level.”
“The December 2017 and January 2018 boom and bust had a cleansing effect on the ecosystem, removing many of the speculators and leaving mainly real investors, operators, and builders in the market. This is what was necessary to move forward and build a successful ecosystem,” – he added.
Some call Israel “The Startup Nation”, given that Israeli startups managed to rise over $5 billion in 2017.
Israel has been actively building up cryptocurrency regulation in the course of this year. For instance, June 1 saw a new draft notice on cryptocurrencies and related money laundering schemes coming into effect in the country.