Singapore becomes one of world’s biggest ICO capitals

The Asian country of Singapore has established itself as the eastern leader when it comes to ICOs. Singapore has recently cemented its place in the initial coin offering (ICO) industry on an international scale. Currently, the country follows closely behind the US and Switzerland when it comes to venture capital activity. The only other eastern countries which show promise in the ICO sector are Russia and Hong Kong.

A study recently conducted by various companies, including Funderbeam, CB Insights, and Crunchbase, has recently confirmed that over 57% of all new ICOs campaigns are conducted by US-based startups. However, the funds are raised by mostly from users based in either Singapore, the UK, Canada, or Switzerland. According to Coinschedule, over $3.3 billion has been raised by a total of 200 different startups since November 2016. In the previous period, from November 2015 to November 2016, tech startups managed to raise $70 million using ICOs.

In addition, a study conducted by Funderbeam confirmed that ICO funding gained huge momentum during 2017, as the amount of capital raised skyrocketed from $228 million up to $2.6 billion. Notably, US and Asian-based startups enjoy much more profitable ICO campaigns than their European counterparts. While US-based startups raise an average of $31.5 million per ICO, Asian-based startups raise around $30.7 million, and European startups raise an average of $16.7 million.

The growing momentum of the ICO industry has contributed significantly to the major price surges currently enjoyed by most cryptocurrencies, including Bitcoin and Ethereum.

This last year has definitely been a watershed one for ICOs to invest in. Research has shown that since January 2016, over 250 blockchain-based startups successfully concluded their ICO campaigns. More than half of the 250 startups completed their campaigns either during, or following, July 2017. One of the most major ICOs to emerge in this period is the Singapore-based startup, TenX, which managed to raise $80 million by issuing their PAY ERC20 compliant tokens.

Earlier this year, the Japan and Singapore-based startup, Quoine, concluded its ICO after raising $105 million. Following their successful campaign, they launched their platform, Quoine Liquid, which lists several tokens issued via ICOs, in an effort to provide the token holders with some liquidity.

During an interview, the CEO and co-founder of Quoine, Mike Kayamori was asked which factors led to Singapore becoming an ICO capital. Kayamori responded by applauding the local regulatory agency, MAS’s,  of doing a good job keeping open communications with the crypto community. Kayamori stated that the regulator’s open and friendly attitude will go a long way in ensuring Singapore’s place in the international ICO market.

However, according to Nizam Ismail, a prominent figure in the cryptocurrency service-providing industry, Singapore's success can be attributed to a number of factors. Ismail is the co-founder of RHT Compliance, as well as a partner of RHTLaw Taylor Wessing.

According to Ismail, Singapore considers itself a hub of international financial activity. Since the regulatory body clarified their position regarding ICOs earlier this year in August, users and ICOs alike have been clear on all policies relevant to ICOs. However, most of these policies are only aimed to discourage nefarious activities, such as money laundering, and does not seek to stifle the industry.

Ismail’s sentiments were echoed by Singapore’s Deputy Prime Minister, Tharman Shanmugaratnam, who also acts as the MAS chairman. Other Singapore leaders have also confirmed that the country is dedicated to ensuring innovation in both the ICO and cryptocurrency industry.