From Reuters via Fortune:
Nearly half of the cash that has poured into newly issued cryptocurrencies in recent years has been raised in Europe, research published on Thursday showed.
The report by Atomico, one of Europe‘s leading venture capital firms, found European-based entities have raised $1.76 billion through so-called initial coin offerings, or ICOs, since 2014, representing 46% of funds raised globally.
ICOs have become a bonanza for digital currency entrepreneurs. They have provided the fuel for a rapid ascent in the value of cryptocurrencies this year that has raised fears of a bubble that could burst, with bitcoin soaring more than 1,000% since the start of 2017.
Atomico’s research is based on data compiled by California-based TokenData and stretches back to 2014, although more than 90% of ICO activity has taken place this year, researcher Ricky Tan said.
Switzerland drew in nearly half of Europe‘s total – $828 million or 47% of ICO funds in the region, mainly through firms registered in Zug, a low-tax region near Zurich that is also the domicile for many top commodities traders, Tan said.
By contrast, North America drew in $1.08 billion of ICOs, or 28% of a global market thatraised around $3.8 billion through the issuance of new types of digital currency.
The report predicts that larger European venture firms will begin to participate in ICOs next year, reversing their historic resistance to what many have seen as unregulated competition to traditional venture funding....MORE
