ICO Activity Plummeted
ICO action 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, 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 other private raises and EOS, the highs go to over $ 3 billion, implying that ICO activity is down 90%.
Without taking”EOS and other chunky private token” data into account, the amount 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 information from September, and the trend continues generally to be down,” the firm emphasized.
Founded in 2009, Autonomous Research is an independent research firm offering global investment research in the banking, investments, insurance, finance, and information service businesses and best way to get 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 drop in token sale activity. “First, maybe investors have devalued the idea of purchasing a utility token (does nothing however, lawfully non-binding), and instead need to purchase equity in the same companies,” the firm wrote. By analyzing”Pitchbook’s data on blockchain and bitcoin venture capital increases,” the company found:
There is indeed a lagged impact in venture with increasing drips of funds, 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 may be securities offerings and fall under its jurisdiction. “STOs are the newest ICOs,” composed 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 won’t hit on 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 whether that risk-seeking capital wound up in ICOs.”
Token sale activity remains, while China attempted to shut down all service providers of cryptocurrencies and ICOsBitstarz bitcoincasinoreview.net 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 give service to domestic users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly common in China.
Can you think ICO action will pick up soon? Tell us in the comments section below.
Pictures courtesy of Shutterstock and Autonomous Research.
Need to calculate your bitcoin holdings? Check our tools department.