ICO Activity Plummeted

ICO action 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 into a little over $400 million, a far cry from the $2.4 billion in January of this year. The highs go to over $ 3 billion, suggesting that ICO action is down 90% if we include chunky token raises and EOS.

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 company emphasized.

Launched in 2009, Autonomous Research is an independent research company offering global investment research in the banking, investments, insurance, finance, and data service businesses and perfect 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 finance, » the company’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 buying 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 raises, » the company found:

There is indeed a impact in venture as well, with drips of capital, reaching over $1 billion in August 2018.

The firm 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 element 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, » composed blockchain consultant Michael K. Spencer, elaborating that »security tokens are real financial securities. »

Citing that investments in security token offerings have not grown to full strength, Autonomous Research highlighted:

STOs won’t 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 if that risk-seeking capital wound up in ICOs. »

While China attempted to shut down all service providers of ICOs and cryptocurrencies , token sale action staysonline casino with bitcoin bitcoin casino with shisa statues The People’s Bank of China (PBOC), the country’s central bank, declared last month that a number of crypto trading platforms originally 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.

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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Source: bitcoincasinoreview.net