ICO Activity Plummeted
ICO action was down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw roughly $300 million in ICO funds raised, with the month before that revised into a little over $400 million, a far cry from the $2.4 billion in January of this year. If we include other private token raises that are chunky and EOS, the highs go implying that ICO activity is down 90%.
Without taking”EOS and other chunky private token” data into account, the amount 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 information from September, and the trend continues generally to be down,” the company emphasized.
Founded in 2009, Autonomous Research is an independent research company offering global investment research in the banking, investments, insurance, finance, and information service industries and best way to get bitcoin into ignition casino. Autonomous Next is the company’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, perhaps investors have devalued the concept of purchasing a utility token (does nothing however, 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 increases,” the company found:
There is indeed a impact in venture as well, with drips of capital, reaching $ 1 billion over 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 decrease 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 newest ICOs,” composed blockchain consultant Michael K. Spencer, elaborating that”security tokens are real financial securities.”
Citing that investments in security token offerings haven’t 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 whether that risk-seeking capital wound up in ICOs.”
Token sale activity stays, while China tried to shut down all service suppliers of ICOs and cryptocurrenciesbitcoin casino review reddit best online casino sportsbook blackjack for bitcoin The People’s Bank of China (PBOC), the country’s central bank, declared last month that a variety of crypto trading platforms initially set up in China have left the country to operate overseas but continue to give service to domestic users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly common in China.
Can you think ICO activity will pick up soon? Let us know in the comments section below.
Pictures courtesy of Shutterstock and Autonomous Research.
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