East-West Digital News and ICObench have studied the ICO market in Central and Eastern Europe (CEE), a region that includes Russia and more than 20 other countries.
This region boasts an impressive record on the global ICO scene, according to this research. Analyzing some 237 ICOs and pre-ICOs with roots in CEE the region conducted last year, the study found that these ICOs accounted for approximately:
- 17% of the number of the operations held worldwide during the same period;
- 22% of the funds raised globally (at least $1.28 billion in 2017)
By comparison, Central and Eastern Europe accounts for less than 1% of the global venture market.
Of the 237 ICOs and pre-ICOs of 2017, 130 came from Russia, making this country by far the regional leader. Next comes Estonia (22 identified operations), then Slovenia and Ukraine (22 and 13, respectively).
The amounts raised in ICOs or pre-ICOs last year varied from $741 to $70.6 million (average amount: $4.9 million). Many CEE companies having conducted ICOs or pre-ICOs in 2017 focus on cryptocurrencies (19 identified cases), business services (18 cases), investment (13 cases) and entertainment (9 cases).
Graph #1: Central & Eastern Europe in the global ICO market in 2017
Graph #2: Russia in the global ICO market in 2017
Identified ICOs and pre-ICOs conducted by companies from CEE/Russia, or with roots in CEE/Russia, based on company registration or factual origin. The amounts do not include unidentified operations and undisclosed amounts – Sources: ICObench, EWDN, company information
Eastern Europe and Russia represent the second largest community in the world (after the USA) contributing to the blockchain technology, and the third largest bitcoin mining pool.
As part of this landscape, the report highlights a variety of blockchain and cryptocurrency initiatives which made the news recently. These include:
- Estonia’s and Russia’s plans to develop national cryptocurrencies;
- Belarusian president Alexander Lukashenko’s decision, in late 2017, to liberalize cryptocurrency mining and ICOs;
- The use of cryptocurrency and blockchain by Russian giants Aeroflot, Mail.Ru, Megafon and others;
- Russian Miner Coin’s plans to create a new-generation cryptocurrency mining system that will help Russia compete with China.
The report also features a selection of startup projects from the region. Among them are
- A “Digital Land” which a Russian startup aims to deploy across the world (Arcona);
- Blockchain platforms intended to make online gaming (Playkey) and VR content creation (VRT World) accessible to all;
- A pioneering ad network that accepts cryptopayments (AB-Chain);
- A token designed to be “as good as gold” to tackle cryptocurrency volatility (Goldmint);
- The project of a 19 y.o. Russian tech genius who wants to “make the web decentralized again” (DeNet), and several others.
This report is part of a comprehensive research on startup innovation and investment in Central and Eastern Europe. Please click here to download your free copy.
