ICO Activity Plummeted
ICO action was significantly 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 bit more than $400 million, a far cry from the $2.4 billion in January of this year. The highs go to over $ 3 billion, suggesting that ICO action is down 90% if we include other chunky token increases 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 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 company offering international investment research in the banking, investments, insurance, finance, and information service businesses 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 finance,” the company’s website details.
Investors Losing Interest in ICOs
Autonomous Research noted three reasons that could explain the fall in sale action that was token. “First, maybe investors have devalued the idea of buying a utility token (does nothing however, lawfully non-binding), and instead need to purchase equity in the exact companies,” the firm wrote. By examining”Pitchbook’s data on blockchain and bitcoin venture capital increases,” the company found:
A lagged effect is indeed 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 newest ICOs,” wrote blockchain adviser Michael K. Spencer, elaborating that”security tokens are real financial securities.”
Citing that investments in security token offerings have not grown to full strength, Autonomous Research highlighted:
STOs won’t hit the market in earnest for another half-year at least due to 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.”
While China tried to shut down all service providers of cryptocurrencies and ICOs, token sale action staysOneHash site The People’s Bank of China (PBOC), the nation’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 national users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly common in China.
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Images courtesy of Shutterstock and Autonomous Research.
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