Page 6 - May 2018 Disruption Report Flip Book

C R Y P T O C U R R E N C Y
CRYPTOCURRENCY 2017: the year of crypto
126 126
J A NMUAAYR Y2 0 21 08 1 8
83
$ 558m
2013
$ 1,088m
2014
$ 1,294m
2015
Disclosed funding (US$m)
Number of de
147
$ 1,128
2016
Source: CB Insights, Citi Research
Global VC-backed funding into RegTech companies over the
In Bank of the Future, Citi GPS analysts wrote:
reached nearly $5 billion, spread over 585 deals. In the first
RegTech startups have seen 103 deals with total funding of translates to $1.2 billion at an annualized pace. Banks such tments i
blockch
nism whi d tokens or existi onfers p the com
Category,
8%
and Goldman Sachs are seen actively making inves During 2017, several cryptocurrency prices rosfoerdirdaemnatitficaltliyon– aBnitdcobinasckwgeroreunudp 1c4hxe,cking software,
Ethereum 100x, Ripple XRP 350x, and Litecoin 50x. The rapid increase has been driven
by: (1) increased retail investor interest in Asian countries such as Japan and South Korea
and also in the U.S.; (2) general media interest including emerging markets (see Google
TOTAL AMOUNT RAISED VIA ICO OFFERINGS
Figure 95. Initial Coin Offerings by
Figure 94. Total Amount Raised via ICO Offerings
monitoring.
D.] ICOs – A Risky New Paradigm?
search trends); (3) increasing institutional invesAtnorICanOd(pInriivtiatleCboainkOcflfiernitnign)teisreastf,uindclruadisiningg mecha
the launch of CME/CBOE futures on Bitcoins; and (4) technical factors, such as delayed
forks [e.g., an update of the underlying software behind the digital token .
participation rights in a future project via newly issue
(new crypto-currencies) in exchange for legal tender
currencies such as Bitcoin or Ethereum. The token c underlying project but usually no ownership rights in
There are close to 1,400 different cryptocurrenICciOes’streamdienrgegldobaasllay mwiathtetrhiaeltsootaulrmcearokfeetarly stage f issuances of close to $4 billion, spread over 200 de
value of widely traded cryptocurrencies at approximately $400 billion, which is substantially
lower than their peak of ~$650 billion in January 2018. Interestingly, Bitcoin’s dominance
in the global market value has steadily decreased from ~90% in January 2017 to ~40% in
March 2018.
© 2018 Citigroup
(14%). The finance sector accounted for ~10% of fu
issued in 2018 YTD over 71 deals). Nearly a third of
was for infrastructure-related companies, followed b
Real Estate, 1% Art & Music, 1%
Identity & Reputation, 1%
Advertise, 2% Gambling, 3% Gaming, 5%
Healthcare, 6% Data Storage, 8%
Others,
$m Total Amount Raised (monthly, US$m) Number of deals (RHS) 1,200
1,050 900 750 600 450 300 150
48 40 32 24 16 8
Total Amount Raised:
in 2016 = US$ 263m (41 deals)
in 2017 = US$ 3,880m (202 deals) in 2018 YTD = US$2,861 (71 deals)
00
Source: CoinSchedule, Citi Research
Payments, 8%
Finance, 10%
Source: CoinSchedule, Citi Research
unding in als durin
all ICO f y trading nds raise
I
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