• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news ICO

ICO Funding Levels Collapse, Investors Blame Dry Spell On Crypto Regulation

Nick Chong by Nick Chong
2 years ago
in ICO, Cryptocurrency Technology
Reading Time: 3min read
ICO Funding Levels Collapse, Investors Blame Dry Spell On Crypto Regulation
Advertisement

As 2017’s crypto bull market swung around, blockchain projects began to search for alternative modes of funding to capitalize on the influx and widespread arrival of interest, press, and free-flowing capital. For many blockchain- crypto-focused startups, venture capitalists weren’t an option, as these mediums of funding were often exclusive to only the crème de la crème, to put it lightly.

Keeping this in mind, a countless number of projects sought to turn to initial coin offerings (ICO), which allowed any old retail investor to get a taste of the venture capitalist realm. And in a matter of weeks, the crypto public became enamored with ICOs, with funding for these projects, whether bona fide or fraudulent, establishing new highs on a week-to-week basis. But now, nearly one year after Bitcoin temporarily breached $20,000 and market euphoria was at its peak, the ICO bubble has all but dried up.

ICO Funding Levels Collapse To 17-Month Low

For the second month in a row, as reported by Bloomberg, ICO funding levels have established new year-to-date lows. In fact, Bloomberg reporters who dubbed the token sale space a “whimper,” cited data from Autonomous Research that indicated that startups raised less than $300 million in September, which is the lowest level since May of 2017. Although $300 million isn’t a figure to scoff at, funding levels for tokens are down over 90 percent from January 2018’s high, where ICOs saw investors, from both retail and institutional backgrounds, contribute over $3 billion worth of assets.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

While the crypto industry is often unpredictable, there are many that believe the decline of the token sale fad can be easily explained. In early-September, a New York-based federal judge deemed that tokens issued through ICOs are covered by securities law. Although this sentiment varies from jurisdiction-to-jurisdiction, the US Securities and Exchange Commision (SEC) has seemingly corroborated this regulatory move, with the SEC’s Stephanie Avakian stating:

“U.S. securities laws protect investors by subjecting broker-dealers and other gatekeepers to SEC oversight, including those offering ICOs and secondary trading in digital tokens.”

Just days later, the People’s Bank Of China (PBOC) also hopped on the anti-token sale train, with China’s central bank issuing a warning against ICOs that was created in a bid to remind investors that tokens are inherently risky investments.

There has also been a growing stigma surrounding ICOs themselves, as many retail investors fear that the so-called “ICO sell-off” catalyzed 2018’s crypto winter, leading some risk-averse individuals to keep their distance from token sales. Even industry leaders, like Sonny Singh, the chief commercial officer of Bitpay, and Bobby Lee, have claimed that while they are bullish on Bitcoin and Ethereum, or “native digital assets” as Lee likes to call them, the success of ICOs is still up for debate.

Singh believes that the amount of capital flowing through token sales “will never get back to where they were eight months ago,” while Lee explained that ICO-issued tokens represent nothing more than “a company’s efforts and business models.” And, to top that off, many of these tokens aren’t even issued through a decentralized system, which is something that hell-bent decentralists can’t stand for.

However, some proponents of the ICO subset claim that while funding levels are declining, the token sale subindustry is doing just fine. Andy Bromberg, who is the co-founder of CoinList, a New York-based ICO-centric platform, recently spoke with Bloomberg on this matter, as reported by NewsBTC. Bromberg, who was a key organizer behind the recent $205 million Filecoin sale, explained that a “bifurcation” has begun to occur between “quality and low-quality projects,” which catalyzed the ICO dry spell.

So the fact that high-quality projects are still raising wheelbarrows full of cash indicates that low-quality projects are being ousted from the limelight, which is “a good thing for this space,” added the CoinList executive.

Featured Image From Shutterstock
Tags: bloombergcryptoICO
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

ILCoin, virtual reality

Why Virtual Reality is The Future of Entertainment

3 weeks ago
Contested Election Results Force Discussion of Blockchain Based Voting System

Contested Election Results Force Discussion of Blockchain Based Voting System

4 months ago
jax network

Jax.Network Addresses Crypto Scalability Issues, to Create A Decentralized Consumer Payment System

5 months ago
crypto tether usdt stablecoin

No, Another $1 Billion In Tether (USDT) Wasn’t Added To The Crypto Market Cap

5 months ago
altcoin crypto bitcoin ieo ethereum

This Class of Once Hyped Altcoins Is Headed To Zero

1 year ago
crypto optimism

Crypto CEO Optimistic Over US Regulatory Outlook

1 year ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Bitcoin Gaming Platform FreeBitco.in Acquires 3.75 Billion FUN Tokens

February 26, 2021

60-Minute IFO, 187 Times Over-Raised, 40 Times the Price, 98 Million US Dollar Marketcap: Berry Data Has Become a Bright Star on BSC

February 26, 2021

Get Your Brand New Tokens on Defiqa’s Presale

February 26, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.