U.Today Franchise
0
🤷 Opinions

The 2018 ICO/STO Market Generated $20 Bln — What Can 2019 Bring in Terms of Fundraising?

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Jack Thomas
    🤷 Opinions

    🙄💫Many felt that ICOs and similar fundraising methods died in 2017⚰️, but 2018 saw $20 bln being raised, so what can 2019 hold?🤔

The 2018 ICO/STO Market Generated $20 Bln — What Can 2019 Bring in Terms of Fundraising?
Cover image via u.today
Contents

The ICO model and ecosystem has been a unique fundraising tool for cryptocurrency and blockchain endeavours, but it is also a tool that has come under massive scrutiny. This in itself has given rise to the STO fundraising market, which is yet to prove itself.

However, even though 2017 was the pinnacle of this style of fundraising, and many saw 2018 as the end of it, it has been revealed that as much as $20 bln was raised in ICO and STO offerings through the whole of last year.

There is a lot that can be read into that as the fundraising models continue to evolve, especially with the addition of STOs, but the real question is whether 2019 will be the same, raise even more, or raise a lot less.

STOs and securities concerns

Part of the reason why STOs have come more to the fore in recent times is because of the concerns around securities offerings when it came to the ICO boom. Many projects that raised millions of dollars were curtailed by securities regulators such as the SEC in the US.

The key difference between ICOs and STOs is that the things with the latter one are clearer: they deal with securities. With ICOs, quite often everything is not so obvious. While many of them claim that they are offering to buy utility tokens, in reality, they are selling securities as well.

In total, in 2018, over $19.7 billion was raised by 1,132 ICOs and STOs. Over $5.8 billion of the volume was raised by two projects. They are the EOS Foundation, which is known to have conducted the largest ICO in history with over $4 billion raised in June 2018, and Telegram messenger, which managed to raise $1.7 billion.

These two projects thus have a big role to play in the lifeblood of this market through 2018, and are almost outliers in determining if this ecosystem is healthy or able to continue growing.

The need for clarity

STOs are certainly becoming more popular as ICOs fall away, and the reason has to do with regulation, but there is also still a need for more clarity.

Analysts at PwC’s subsidiary Strategy& said STOs are considered to be a more regulated and mature way of raising funds but if we classify tokens as securities, both these approaches to funding are practically the same.

Because of scams and bad projects, though, many investors have shied away from the blockchain group venture capitalist funding methods. Thus, even with regulation, it could be determined that going forward there will be a drop in the money raised as people approach with caution.

Subscribe to the official U.Today Telegram channel. Get news first!

About the author

Jack Thomas is a journalist from Australia who has had a long career writing about finance and technology. He has combined his enthusiasm for these two subjects and applied his writing to covering blockchain and cryptocurrencies in the past few years.

Recommended articles
CLOUD MININGPromoted
0
📰 News

Stablecoins Recognized by President of European Central Bank

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Vladislav Sopov
    📰 News

    After the President of the ECB Christine Lagarde recognized the demand for stablecoins, market players started commented on her words. Tuur Demeester is among the first!

Stablecoins Recognized By European Central Bank Head: Reaction
Cover image via 123rf.com
Contents

Tuur Demeester, Founding Partner of Adamant Capital, published a Twitter video of the President of the European Central Bank (ECB) Christine Lagarde speaking publicly on the demand for stablecoins.

Entering the Business

Mr. Demeester, a Bitcoin (BTC) advocate who is well-known for his "Bitcoin Reformation" theory, commented on the words of Christine Lagarde about cryptocurrencies:

Looks like the ECB will be entering the stablecoin business

Thus, Mr. Demeester treated Ms. Lagarde's speech as a sign of political will by the ECB to implement stablecoins into EU monetary policy. 

However, the attention of his audience was drawn to another regulatory statement. While answering a journalist's question, Ms. Lagarde says that the ECB "only knows of one" stablecoin at the moment. This left commentators and the audience guessing, and whether she was referring to USDT,  Facebook's Libra, or the Central Bank Digital Currency (CBDC), the much-anticipated European state-backed stablecoin known.

Bitcoin Doesn't Have to Ask for Permission 

Christine Lagarde also spoke on developments in the "Bitcoin segment" with a suggestion of skepticism in her voice. This has not gone unnoticed. Anthony "Pomp" Pompiliano, Co-Founder and Partner at Morgan Creek Digital Assets, commented on the evaluation by the ECB President:

It should be noted that on December 12, 2019, the President of the ECB Christine Lagarde presented a new monetary policy for the EU. During her debut press conference, Ms. Lagarde said that in the stablecoins sphere, central banks better be in a position that was 'ahead of the curve'.

It should also be noted that billionaire investor Ray Dalio recently said that there will be much greater demand for stablecoins than Bitcoin.

👉MUST READ

Billionaire Ray Dalio on Bitcoin and Stablecoins: Possibly Never

Billionaire Ray Dalio on Bitcoin and Stablecoins: Possibly Never

When will we see first European state-backed stablecoin? Share your thoughts with us on Twitter

In this Telegram channel you’ll find fresh news, interviews, infographics, forecasts & other helpful stuff. Join U.Today's channel.

About the author

 Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockhain. Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Recommended articles
CLOUD MININGPromoted