diciembre 5, 2017 | Posted in:Blog
ICO Activity Plummeted
ICO action was significantly down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw about $300 million in ICO funds increased, 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 token raises and EOS, the highs go implying that monthly 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 drop reached 90.7 percent. «We’ve 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 global investment research in the banking, investments, insurance, finance, and data service industries and perfect way to find bitcoin into ignition casino. Autonomous Next is the company’s London-based practice focusing on»the effects of technology on the future of finance,» the firm’s website details.
Investors Losing Interest in ICOs
Autonomous Research noted three reasons that could explain the drop in token sale action. «First, maybe investors have devalued the concept of purchasing a utility token (does nothing however, legally non-binding), and instead want to buy equity in the same companies,» the company wrote. By analyzing»Pitchbook’s data on blockchain and bitcoin venture capital raises,» the firm found:
There is indeed a lagged effect with rising 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 companies 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 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,» wrote blockchain consultant Michael K. Spencer, elaborating that»security tokens are real financial securities.»
Citing that investments in security token offerings have not grown to full advantage, Autonomous Research emphasized:
STOs will not hit 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 whether that risk-seeking capital wound up in ICOs.»
Token sale activity stays while China tried to shut down all service providers of ICOs and cryptocurrenciesbitcoin casino mobile app iphone anonymous bitcoin casino no dep bonus The People’s Bank of China (PBOC), the country’s central bank, admitted last month that a variety of crypto trading platforms originally 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? Tell us in the comments section below.
Pictures courtesy of Shutterstock and Autonomous Research.
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