ICO activity was significantly down in September, according to a study by Autonomous Research. The firm wrote:
Last month saw about $300 million in ICO funds raised, 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 other private raises and EOS.
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 fall reached 90.7 percent. «We have scrubbed token offering data from September, and the trend continues generally to be down,» the firm emphasized.
Launched in 2009, Autonomous Research is an independent research company offering international 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 firm’s London-based practice focusing on»the effects of technology on the future of finance,» the company’s website details.
Autonomous Research noted three reasons that could explain the drop 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 examining»Pitchbook’s data on blockchain and bitcoin venture capital increases,» the company found:
There’s indeed a effect in venture with rising drips of capital, 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.»
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 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 haven’t grown to full strength, Autonomous Research highlighted:
STOs will not hit 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 providers of ICOs and cryptocurrenciesmBit bitcoin casino The People’s Bank of China (PBOC), the country’s central bank, admitted last month that a number of crypto trading platforms initially set up in China have left the country to operate abroad but continue to provide service to domestic 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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