Bitcoin
BTC$19 095.25

0.49%

Ethereum
ETH$1 331.94

0.71%

Tether
USDT$1.000074

0%

USD Coin
USDC$1.000122

0.02%

Binance Coin
BNB$277.78

-1.12%

XRP
XRP$0.488936

-0.60%

ICOs 58 Times Lower Than Last Year


13 May 2019

WSJ Shock: ICOs 58 Times Lower Than Last Year


A report by the Wall Street Journal has gotten the crypto community talking about the general state of the ICO market in 2019. The report that was published on the 31st of March, has been making the rounds in the popular cryptocurrency press and things are looking bleak for ICOs this year.

This won't come as a surprise to anyone who has been following the trends as much as the reporter for the Wall Street Journal has though. There has been a definite downward trend in the amount of money raised through ICOs since the middle of last year. However, when put in simple terms, the difference between Q1 of last year and this year are staggering, to say the least.

The first quarter of last year had 58 times more money raised than the same quarter this year. The report also includes a reason for the downturn, which would be apparent to anyone who has been burnt due to investing in a dodgy coin or a startup that had expectations that were slightly too high.

The numbers don't lie


The report by the Wall Street Journal shows that of 2500 tracked ICOs only 45% have actually managed to successfully raise the required funds. In addition to this, only 15% of the tokens issued are trading at their ICO level or higher, which puts to rest the theory that ICOs are a good investment.

Another thing that is mentioned is a quote by a blockchain attorney by the name of Joshua Ashley Klayman. Klayman says that ICOs will disappear entirely, much to the dismay of many in the cryptocurrency industry. However, he also goes on to say that the market for security tokens will not disappear and that it could inf act increase.

STOs moving into the void


One of the key drivers behind the lack of ICOs is the SEC going after ICOs as securities. Though they weren't ever meant to be securities, they are being treated as such. In fact, the SEC has only classified Bitcoin and Ethereum as non-securities, giving those two tokens a measure of nimbleness to appeal to various segments in the market.

Other coins are going to be hardpressed to break free of the securities shackles that the SEC has put on them and this could hurt innovation in the field – at least in the United States. What could turn out to be a bad move, the worldwide market will become more liberalized, while the US will fall behind.

However, for those companies who are looking mainly to use STOs to fund themselves and not to produce a utility token, then they will have the SEC on their side. It will be safer for companies to release an STO, more than the ICO ever was. However, it needs to be mentioned again that this is putting companies that are based in the United States at a large disadvantage compared to others in the field where regulations are not as strict or broad.

The same problems are being found in Spain and Hong Kong. Regulators are simply not allowing ICOs to go through or are putting too much burden on them and this is forcing companies to go the STO route to simply be able to issue their tokens.

It remains to be seen if this method will allow those startups to be as agile as competitors that have no need to make their token a security. What is known is that regulators are clamping down hard on ICOs and that there will be less and less in the future.

Author: Ali Raza for: Crypto-Rating.com

Related

The crypto market has taken a hiatus from the sell-off
The crypto market has taken a hiatus from the sell-off
ETH After the Merge: Fall Instead of Growth
ETH After the Merge: Fall Instead of Growth
Dogecoin becomes second largest PoW cryptocurrency
Dogecoin becomes second largest PoW cryptocurrency
Crypto bears confirmed their strength
Crypto bears confirmed their strength
The crypto market has taken a step up but has not yet fly
The crypto market has taken a step up but has not yet fly
Cryptocurrencies: Main Week of the Calendar
Cryptocurrencies: Main Week of the Calendar
Is Bitcoin heading to $15K? Why are the markets suddenly pulling back?
Is Bitcoin heading to $15K? Why are the markets suddenly pulling back?
Ethereum Merge to swamp other coins with miners
Ethereum Merge to swamp other coins with miners
All Hope for Ethereum
All Hope for Ethereum

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 84.4% 28 $19 095.25 0.49% -4.82% $365 864 647 826 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 73.6% 56 $1 331.94 0.71% -8.41% $163 184 327 469 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.4% 1 $1.000074 0% 0% $67 959 697 977 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 92.4% 1 $1.000122 0.02% 0% $49 720 551 593 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 86.4% 17 $277.78 -1.12% -0.16% $44 816 623 769 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 64.8% 72 $0.488936 -0.60% 26.12% $24 372 838 519 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 93.6% 1 $1.000226 -0.02% 0.02% $20 521 880 085 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 80% 32 $0.456989 -0.44% -6.44% $15 641 937 626 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 84% 31 $33.96 0.41% 0.39% $12 044 646 131 SOL 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 93.2% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Dogecoin (DOGE) DOGE Dogecoin predictions 87.6% 15 $0.063120 -3.40% 2.65% $8 374 180 689 DOGE 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 79.6% 43 $6.34 -1.08% -9.42% $7 104 062 562 DOT 7 days price change
13 Dai (DAI) DAI Dai predictions 95.2% 1 $1.000115 0.02% 0.02% $6 930 218 400 DAI 7 days price change
14 Polygon (MATIC) MATIC Polygon predictions 72.8% 54 $0.760974 -1.00% -7.31% $6 646 589 172 MATIC 7 days price change
15 SHIBA INU (SHIB) SHIB SHIBA INU predictions 76.8% 42 $0.000011 1.90% -4.05% $6 254 513 839 SHIB 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.