ICO Action Plummeted
ICO action was significantly down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw about $300 million in ICO funds increased, with the month before that revised to a bit over $400 million, a far cry from the $2.4 billion in January of this year. If we include EOS and other chunky private token increases, the highs go implying that monthly 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 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 international investment research in the banking, investments, insurance, finance, and information service businesses and best 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 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 idea of buying a utility token (does nothing however, lawfully non-binding), and instead want to purchase equity in the same companies,” the company wrote. By examining”Pitchbook’s data on blockchain and bitcoin venture capital raises,” the company found:
A lagged impact is indeed with rising drips of funds as well, in venture, 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 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 new ICOs,” composed blockchain adviser Michael K. Spencer, elaborating that”security tokens are real financial securities.”
Citing that investments in security offerings haven’t grown to full strength, Autonomous Research highlighted:
STOs will not hit on the market in earnest for another half-year at least due to 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 activity remains, while China tried to shut down all service providers of cryptocurrencies and ICOsTrueflip app 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 abroad 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 action will pick up soon? Let us know in the comments section below.
Pictures courtesy of Shutterstock and Autonomous Research.
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