ICO Action Plummeted
ICO activity was significantly 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 to a bit 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 to over $ 3 billion, suggesting 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 drop reached 90.7 percent. “We’ve 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 firm offering international investment research in the banking, investments, insurance, finance, and information service businesses and best 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 company’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 buying a utility token (does nothing however, lawfully non-binding), and instead want 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 effect with increasing drips of capital as well, 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 factor for the drop 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 new ICOs,” composed blockchain adviser Michael K. Spencer, elaborating that”security tokens are real financial securities.”
Citing that investments in security token offerings haven’t grown to full advantage, Autonomous Research emphasized:
STOs won’t hit on the market in earnest for another due to regulatory indigestion.
The final 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 cryptocurrencieslow dep casino bitcoin build your own bitcoin casino The People’s Bank of China (PBOC), the country’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 provide service to domestic users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly popular in China.
Do you think ICO activity 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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