The ICO market could see a significant decrease in 2019
Analysts note a decline in projects since late 2018. Regulatory pressures and scams are some of the reasons for the decline. The ICO market could see a significant decrease in 2019
The Organization for Economic Cooperation and Development (OECD) this week raised the idea of taking advantage of the initial offersof currencies (ICO) for the development of small and medium enterprises (SMEs). However, the international body considers that global regulators should work together to regulate these schemes so that they can be used appropriately for these purposes, considering that it is one of the most out standing resource collection methods within the ecosystem of the cryptoactives.
However, remember that the regulatory uncertainty that surrounds them currently exposes investors to a series of risks, including among them the dangers of fraudulent activities. Consequently, it raises the need for those responsible for formulating policies to generate the necessary conditions to facilitate the development of ICOs in asafe manner. This, according to the OECD, would facilitate a more secure use of the tokens issued in these offers.
Thisis a new approach, taking into account that the concerns and regulatory processes of many countries have started since 2017 focusing on the supervision of these offers. However, most of the analyzes point to the fact that ICOs will retreat in the market this year, although since the end of 2018, this tendency towards the decrease of these projects has been recorded, due to -among otherfactors- the regulatory pressures .
The ICO scenario in 2019
As apreamble to the decrease in the projects expected for this 2019, are port published on January 16 by BitMEX Research exchange house, ratifies that it is very unlikely that the ICO fever that took placein 2017 will be repeated. and early 2018, even if project promoters continue to try to raise money in this way.
In that sense, the company calculates a drop of approximately five billion dollars in collections, despite the fact that many issuers managed to manage profits estimated at more than 24 billion USD in 2018.
Todemonstrate this fact, the Ico bench platform ensures that in the first two weeks of 2019 the ICO projects raised approximately 90 million USD, most of them (about 80.2 million USD) related to the funds of the Chelle Coin ICO project. In this way, the reportindicates that, despite the large amount of ICO in progress, only 6 million USD could be collected in funds between January 1 and January, being one of the weeks with the highest collection low since 2017.
This start in decline, is seen as the continuity of a trend observed since the second half of 2018, when they began to decrease offers, compared to the first half of that year. During this period, the amount collected was reduced to USD 500 million, which represents 65% less than the amount collected at the beginning of 2018, according to Icobench.
The influence of the ICO regulation processes
Amon gone of the main causes mentioned for the reduction of ICO projects, some analysts cite regulatory pressures The increase in controls and a greater demand in supervision seems to be one of the reasons. This increase in regulatory measures by the authorities – focused mainlyon delimiting the freedoms of the ICO – is being observed throughout the world.
Of note in this area are the actions carried out by the Securities and Exchange Commission of the United States (SEC), which in recent months has been acting on the basis of the risks identified in relation to the ICOs, and which also qualified most of the tokens, except for bitcoin and ether, as values.
This fact meant a change in regulation and placed many startups in the dilemma of defining their tokens well before launching the irinitiative, since if they were to qualify as a value, the project must immediately comply with a series of requirements required by Law of Values.
The fears intensified when the SEC published two circulars through which it announced that Carrier EQ Inc (AirFox, as it is known) and Paragon Coin Inc. were fined USD 250,000 for issuing digital securities without proper registration. In addition to the fine, the companies agreed to return the funds to investors who request them and add their tokens to the list of securities registered with the Securities and Exchange Commission.
The secases generated doubts and uncertainty about the status of many cryptocurrencies and became a threat that affected significant
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not beattributed to, Infocoin.