ICO Activity Plummeted
ICO activity was down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw about $300 million in ICO funds raised, together with the month before that revised into a little more than $400 million, a far cry from the $2.4 billion in January of this year. If we include chunky private raises and EOS, the highs go to over $ 3 billion, implying that ICO action is down 90%.
Without taking”EOS and other chunky private token” data into consideration, the quantity of ICO funds raised was down 88.53 percent last month from January. Otherwise, the fall reached 90.7 percent. “We have scrubbed token offering data from September, and the trend continues generally to be down,” the firm emphasized.
Founded in 2009, Autonomous Research is an independent research company offering international 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 effects 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 drop in token sale activity. “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 firm found:
A impact is with drips of funds also, in venture, reaching over $1 billion in August 2018.
The company 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 may be securities offerings and fall under its jurisdiction. “STOs are the new ICOs,” wrote blockchain adviser Michael K. Spencer, elaborating that”security tokens are actual financial securities.”
Citing that investments in security token offerings haven’t grown to advantage, Autonomous Research highlighted:
STOs won’t hit on the market in earnest for another half-year at least due to regulatory indigestion.
The last reason the firm put forward relates to”the collapse/crisis in Chinese P2P lending since 2015, and whether that risk-seeking capital wound up in ICOs.”
Token sale action remains while China tried to shut down all service suppliers of cryptocurrencies and ICOsbitcoin casino usa free spins best bitcoin deposit bonus casino The People’s Bank of China (PBOC), the country’s central bank, declared last month that a number of crypto trading platforms originally set up in China have left the country to operate abroad but continue to give service to national users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly common in China.
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Pictures courtesy of Shutterstock and Autonomous Research.
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