ICO Activity 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 raised, together 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 chunky private raises and EOS, the highs go to over $ 3 billion, suggesting that ICO action 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 fall reached 90.7 percent.  « We’ve scrubbed token offering information from September, and the trend continues generally to be down, » the firm emphasized.

Launched in 2009, Autonomous Research is an independent research firm offering global investment research in the banking, investments, insurance, finance, and information service industries 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 drop in token sale action. « First, maybe investors have devalued the idea of purchasing a utility token (does nothing however, legally non-binding), and instead need to buy equity in the same companies, » the company wrote.  By examining »Pitchbook’s data on blockchain and bitcoin venture capital increases, » the firm found:

There is indeed a effect in venture also, with drips of funds, 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 may be securities offerings and fall under its jurisdiction.  « STOs are the newest ICOs, » wrote blockchain consultant Michael K. Spencer, elaborating that »security tokens are actual financial securities. »

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

STOs will not hit the market in earnest for another half-year at least 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 action remains while China tried to shut down all service suppliers of cryptocurrencies and ICOsbest bitcoin casino to deposit reddit bitcoin casino with free coin The People’s Bank of China (PBOC), the nation’s central bank, admitted last month that a number of crypto trading platforms initially set up in China have left the country to operate overseas but continue to provide service to national users. In August, news.Bitcoin.com reported that P2P crypto lending grows increasingly popular in China.

Can you think ICO activity will pick up soon? Tell us in the comments section below.

Images courtesy of Shutterstock and Autonomous Research.

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Source: bitcoincasinoreview.info