ICO Action Plummeted
ICO action was significantly down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw roughly $300 million in ICO funds raised, together with the month before that revised to a bit more than $400 million, a far cry from the $2.4 billion in January of this year. The highs go to over $ 3 billion, suggesting that ICO activity is down 90% if we include chunky private token increases and EOS.
Without taking”EOS and other chunky private token” data into account, the quantity of ICO funds raised was down 88.53 percent last month from January. Otherwise, the drop reached 90.7 percent. “We’ve scrubbed token offering information from September, and the trend continues generally to be down,” the company emphasized.
Launched in 2009, Autonomous Research is an independent research company offering global investment research in the banking, investments, insurance, finance, and information service industries and perfect way to get bitcoin into ignition casino. Autonomous Next is the firm’s London-based practice focusing on”the impact of technology on the future of finance,” the company’s website details.
Investors Losing Interest in ICOs
Autonomous Research noted three reasons that could explain the fall in token sale action. “First, perhaps investors have devalued the concept of purchasing a utility token (does nothing yet, lawfully non-binding), and instead need to purchase equity in the same companies,” the company wrote. By analyzing”Pitchbook’s data on blockchain and bitcoin venture capital raises,” the company found:
A lagged impact is in venture with rising drips of funds, reaching over $1 billion in August 2018.
The firm believes that there are two reasons for this observation:”fintech businesses like Robinhood and Revolut pivoting into crypto” and”Bitmain trying to vacuum up capital before the public offering.”
Security Token Offerings
The second element for the drop in ICO activity concerns security token offerings (STOs). According to the U.S. Securities and Exchange Commission (SEC), ICOs could be securities offerings and fall under its jurisdiction. “STOs are the new ICOs,” composed blockchain adviser Michael K. Spencer, elaborating that”security tokens are actual financial securities.”
Citing that investments in security token offerings have not grown to full strength, Autonomous Research highlighted:
STOs will not hit on the market in earnest for another half-year at least due to regulatory indigestion.
The last reason the company put forward relates to”the collapse/crisis in Chinese P2P lending since 2015, and if that risk-seeking capital wound up in ICOs.”
Token sale action stays, while China attempted to shut down all service providers of cryptocurrencies and ICOsbitcoin casino with free spins bonus bitcoin online casino for us players The People’s Bank of China (PBOC), the country’s central bank, declared last month that a number of crypto trading platforms initially set up in China have left the country to operate overseas but continue to provide service to domestic users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly popular in China.
Can you think ICO action will pick up soon? Let us know in the comments section below.
Images courtesy of Shutterstock and Autonomous Research.
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