ICO Action Plummeted
ICO activity was significantly down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw roughly $300 million in ICO funds increased, 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. The highs go suggesting that ICO activity is down 90% if we include chunky token raises and EOS.
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 fall 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 industries and best way to get 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 firm’s website details.
Investors Losing Interest in ICOs
Autonomous Research noted three reasons that could explain the fall in sale activity. “First, perhaps investors have devalued the concept of buying a utility token (does nothing however, lawfully non-binding), and instead need to purchase equity in the exact companies,” the company wrote. By examining”Pitchbook’s data on blockchain and bitcoin venture capital increases,” the company found:
There is indeed a lagged impact with drips of funds as well, in venture, reaching $ 1 billion over in August 2018.
The company 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 factor for the decrease 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 actual financial securities.”
Citing that investments in security offerings have not grown to advantage, Autonomous Research highlighted:
STOs will not hit 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.”
While China attempted to shut down all service providers of cryptocurrencies and ICOssale activity remainsTrusted betchain casino The People’s Bank of China (PBOC), the country’s central bank, declared last month that a variety of crypto trading platforms initially set up in China have left the country to operate overseas but continue to give service to national users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly common in China.
Can you think ICO activity will pick up soon? Let us know in the comments section below.
Images courtesy of Shutterstock and Autonomous Research.
Have to calculate your bitcoin holdings? Check our tools section.
Source: bitcoincasinoreview.info
