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

  • Jack Thomas
    ๐Ÿคท Opinions

    ๐Ÿ™„๐Ÿ’ซMany felt that ICOs and similar fundraising methods died in 2017โšฐ๏ธ, but 2018 saw $20 bln being raised, so what can 2019 hold?๐Ÿค”


The 2018 ICO/STO Market Generated $20 Bln โ€” What Can 2019 Bring in Terms of Fundraising?
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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 PwCโ€™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.

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Binance Coin Price Surge Indicates Huge Support for Binance Chain Mainnet โ€” Is This the Future?

  • Jack Thomas
    ๐Ÿคท Opinions

    Binance Coin has once again surged, and it is off some big news that could well cause major competition for Ethereum.


Binance Coin Price Surge Indicates Huge Support for Binance Chain Mainnet โ€” Is This the Future?
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On a day where the markets are predominantly in the red, but only slightly, it is interesting to note that Binance Coin is surging. The exchange token is up fiver percent, but it is totally understandable as to why there is so much positivity around the company.

The biggests news, which comes off the back of its decentralized platform, Binance DEX, is that the Binance Chain mainnet has been launched and that they will be executing their Mainnet Swap on April 23rd.


This means that Binance Coin will be shifting away from Ethereum, leaving questions open as to what this means for Ethereum, which has been under the pump to stay relevant in todayโ€™s crypto and blockchain space. This move will result in a migration of $3 billion worth of BNB being moved away from the Ethereum blockchain and onto the new Binance chain.

A positive investment

All the good news emanating out of Binance has not only helped the coin to climb in price when the rest of the market settles down โ€“ it is helping it head towards a new all time high. Binance, like many altcoins, reached its ATH in January of 2018 in that parabolic stage.

Binance Coin hit $24 back then, and now, it is at $21 and rising with the thoughts being that when the mainnet move takes place, there could well be an even bigger surge. It is also interesting to note that just a few months ago, at the end of last year, it hit lows of $4.50.

Competing with Ethereum?

The mainnet move is obviously good news for Binance, as the markets are suggesting, but is it equally bad news for Ethereum, which was the holder of $3 billion thanks to the exchange. Many people have speculated that this new blockchain platform will pose competition to Ethereum, but ultimately it will help diversify Binance Coinโ€™s use cases while also increasing its utility.

So perhaps rather than being a direct competition to ETH, it is only going to strengthen Binance Coin and in doing so perhaps spell out the future of cryptocurrencies as there is good reason to believe that this token, with its added utility and use cases, will be a viable token for the world going forward.

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