ICO Activity Plummeted

ICO activity was down in September, according to a study by Autonomous Research. The firm wrote:

Last month saw about $300 million in ICO funds increased, together 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 token increases, the highs go implying that monthly ICO activity is down 90%.

Without taking »EOS and other chunky private token » data into account, the quantity 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 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 global investment research in the banking, investments, insurance, finance, and data service businesses and best way to find bitcoin into ignition casino. Autonomous Next is the firm’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 drop in sale action that was token. « First, maybe investors have devalued the concept of buying a utility token (does nothing yet, legally non-binding), and instead want to buy equity in the same companies, » the company wrote.  By analyzing »Pitchbook’s data on blockchain and bitcoin venture capital raises, » the company found:

There’s indeed a effect in venture with increasing drips of capital, reaching over $1 billion in August 2018.

The company 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 element 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 newest ICOs, » wrote blockchain adviser Michael K. Spencer, elaborating that »security tokens are actual financial securities. »

Citing that investments in security offerings haven’t grown to full strength, Autonomous Research emphasized:

STOs won’t hit the market in earnest for another due to regulatory indigestion.

The last 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 action stays while China tried to shut down all service providers of ICOs and cryptocurrenciescan you legally open a bitcoin casino bitcoin casino software for sale 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 abroad but continue to give 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.

Images courtesy of Shutterstock and Autonomous Research.

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Source: bitcoincasinoreview.info