ICO Action Plummeted
ICO activity was down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw roughly $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 private token increases, the highs go to over $3 billion, implying that monthly 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 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 perfect way to get bitcoin into ignition casino. Autonomous Next is the firm’s London-based practice focusing on”the impact of technology on the future of finance,” the firm’s website details.
Investors Losing Interest in ICOs
Autonomous Research noted three reasons that could explain the fall in sale activity that was token. “First, maybe investors have devalued the concept of purchasing a utility token (does nothing yet, lawfully non-binding), and instead want to purchase equity in the exact companies,” the company wrote. By analyzing”Pitchbook’s data on blockchain and bitcoin venture capital increases,” the firm found:
There is indeed a impact with increasing drips of funds also, 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 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 newest ICOs,” composed blockchain adviser Michael K. Spencer, elaborating that”security tokens are actual financial securities.”
Citing that investments in security offerings have not grown to full strength, Autonomous Research highlighted:
STOs won’t hit on the market in earnest for another 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 activity remains, while China attempted to shut down all service suppliers of cryptocurrencies and ICOsBetcoin site The People’s Bank of China (PBOC), the nation’s central bank, declared last month that a variety of crypto trading platforms initially set up in China have left the country to operate overseas but continue to give service to national users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly popular in China.
Can 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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