ICO Action Plummeted
ICO activity was down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw roughly $300 million in ICO funds increased, together 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. If we include EOS and other token raises, the highs go to over $3 billion, suggesting that ICO action is down 90%.
Without taking”EOS and other chunky private token” data into consideration, 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.
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 fund,” the company’s website details.
Investors Losing Interest in ICOs
Autonomous Research noted three reasons that could explain the drop in sale action. “First, maybe investors have devalued the concept of purchasing a utility token (does nothing yet, lawfully non-binding), and instead want to buy equity in the same companies,” the firm wrote. By examining”Pitchbook’s data on blockchain and bitcoin venture capital raises,” the firm found:
There is indeed a lagged impact with drips of funds as well, in venture, reaching $ 1 billion over in August 2018.
The firm 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 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 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 if that risk-seeking capital wound up in ICOs.”
Token sale action stays, while China tried to shut down all service suppliers of cryptocurrencies and ICOsFortune Jack review The People’s Bank of China (PBOC), the country’s central bank, declared last month that a number 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 popular in China.
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Pictures courtesy of Shutterstock and Autonomous Research.
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Source: bitcoincasinoreview.net
