noviembre 29, 2017 | Posted in:Blog
ICO Activity Plummeted
ICO action 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 other private increases that are chunky and EOS, the highs go suggesting that monthly ICO action is down 90%.
Without taking»EOS and other chunky private token» data into consideration, the amount of ICO funds raised was down 88.53 percent last month from January. Otherwise, the drop reached 90.7 percent. «We have scrubbed token offering data from September, and the trend continues generally to be down,» the company emphasized.
Founded in 2009, Autonomous Research is an independent research firm offering international investment research in the banking, investments, insurance, finance, and data service businesses 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 fund,» the firm’s website details.
Investors Losing Interest in ICOs
Autonomous Research noted three reasons that could explain the fall in sale activity that was token. «First, maybe investors have devalued the concept of purchasing a utility token (does nothing yet, legally non-binding), and instead need to buy equity in the same companies,» the company wrote. By examining»Pitchbook’s data on blockchain and bitcoin venture capital raises,» the company found:
There’s indeed a effect in venture with increasing drips of capital, reaching $ 1 billion over 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 factor for the decrease 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 newest ICOs,» composed blockchain adviser Michael K. Spencer, elaborating that»security tokens are real financial securities.»
Citing that investments in security offerings haven’t grown to full strength, Autonomous Research emphasized:
STOs will not hit on the market in earnest for another 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 activity stays, while China attempted to shut down all service suppliers of cryptocurrencies and ICOsBetChain scam The People’s Bank of China (PBOC), the nation’s central bank, declared last month that a variety 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 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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