ICO Action 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 increased, together with the month before that revised to a little more than $400 million, a far cry from the $2.4 billion in January of this year. If we include EOS and other private increases, the highs go to over $3 billion, suggesting that monthly ICO activity is down 90%.
Without taking”EOS and other chunky private token” data into consideration, the quantity of ICO funds raised was down 88.53 percent last month from January. Otherwise, the fall reached 90.7 percent. “We’ve scrubbed token offering information from September, and the trend continues generally to be down,” the firm 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 bitcoin casino promo codes no deposit casino bitcoin usa. 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 drop in sale activity. “First, maybe investors have devalued the concept of purchasing a utility token (does nothing however, legally non-binding), and instead need to buy equity in the exact companies,” the company wrote. By analyzing”Pitchbook’s data on blockchain and bitcoin venture capital increases,” the firm found:
There is indeed a impact in venture as well, with increasing drips of capital, reaching $ 1 billion 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 newest 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 advantage, Autonomous Research highlighted:
STOs will not hit the market in earnest for another due to indigestion.
The last reason the firm 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 attempted to shut down all service suppliers of ICOs and cryptocurrencies sale activity remains. The People’s Bank of China (PBOC), the nation’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 national 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.
Pictures courtesy of Shutterstock and Autonomous Research.
Have to calculate your bitcoin holdings? Check our tools section.