ICO Activity 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 raised, together with the month before that revised into a bit over $400 million, a far cry from the $2.4 billion in January of this year. If we include EOS and chunky private token raises, the highs go to over $3 billion, implying that 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 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 firm offering international investment research in the banking, investments, insurance, finance, and data 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 fund,” the company’s website details.
Investors Losing Interest in ICOs
Autonomous Research noted three reasons that could explain the fall in sale action. “First, maybe investors have devalued the idea of purchasing a utility token (does nothing yet, lawfully non-binding), and instead need to purchase equity in the exact companies,” the company wrote. By analyzing”Pitchbook’s data on blockchain and bitcoin venture capital raises,” the company found:
There is indeed a lagged impact in venture with rising drips of capital, 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 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,” wrote blockchain consultant Michael K. Spencer, elaborating that”security tokens are real financial securities.”
Citing that investments in security offerings have not grown to full strength, Autonomous Research emphasized:
STOs will not hit the market in earnest for another due to indigestion.
The final reason the firm 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 activity remains while China tried to shut down all service providers of cryptocurrencies and ICOsbitcoin casino king casino bonus bitcoin casino accepting paypal The People’s Bank of China (PBOC), the country’s central bank, declared last month that a number of crypto trading platforms initially 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.
Do you think ICO activity will pick up soon? Let us know in the comments section below.
Pictures courtesy of Shutterstock and Autonomous Research.
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Source: bitcoincasinoreview.net
