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, 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 implying that monthly ICO action is down 90% if we include chunky private raises and EOS.
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.
Launched in 2009, Autonomous Research is an independent research company offering global investment research in the banking, investments, insurance, finance, and data service industries and best way to find bitcoin into ignition casino. Autonomous Next is the company’s London-based practice focusing on”the impact 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 drop in token sale activity. “First, maybe investors have devalued the concept of purchasing a utility token (does nothing however, legally non-binding), and instead want to purchase equity in the same companies,” the company wrote. By examining”Pitchbook’s data on blockchain and bitcoin venture capital raises,” the firm found:
There is indeed a lagged effect with drips of capital also, in venture, 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 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 offerings haven’t grown to full strength, Autonomous Research emphasized:
STOs won’t 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 activity stays, while China tried to shut down all service suppliers of ICOs and cryptocurrenciesmake money bitcoin casino bitcoin casino bonus code The People’s Bank of China (PBOC), the country’s central bank, admitted last month that a variety of crypto trading platforms initially set up in China have left the country to operate abroad but continue to provide service to domestic users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly popular in China.
Do 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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Source: bitcoincasinoreview.net
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