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 raised, 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 chunky private token raises, the highs go to over $3 billion, suggesting 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 fall reached 90.7 percent. «We have 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 international investment research in the banking, investments, insurance, finance, and data service businesses 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 firm’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 buying a utility token (does nothing yet, legally non-binding), and instead need to purchase equity in the same companies,» the company wrote. By examining»Pitchbook’s data on blockchain and bitcoin venture capital raises,» the firm found:
A effect is in venture also, with increasing drips of capital, reaching over $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 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 new ICOs,» wrote blockchain consultant Michael K. Spencer, elaborating that»security tokens are real financial securities.»
Citing that investments in security token offerings haven’t grown to strength, Autonomous Research highlighted:
STOs will not hit the market in earnest for another half-year at least 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.»
Token sale action stays while China tried to shut down all service suppliers of cryptocurrencies and ICOsCloudBet app 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 domestic users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly popular in China.
Do you think ICO action will pick up soon? Tell us in the comments section below.
Images courtesy of Shutterstock and Autonomous Research.
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