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New! Bitcoin Price Prediction: $3,600 BTC Price Is a Very Likely Scenario. When to Invest in Bitcoin (BTC)?
New! Bitcoin Price Prediction: $3,600 BTC Price Is a Very Likely Scenario. When to Invest in Bitcoin (BTC)?

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

  • 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?
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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 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.

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Ripple’s Market Cap Further Slips Behind Ethereum as XRP Price Prediction Stalls

  • Jack Thomas
    🤷 Opinions

    📊👀Ripple’s Market cap, through its XRP token, was ahead of Ethereum at a few stages, but its price prediction has slowed and come under pressure from resistance below the $0.33 mark, and in doing so, Ethereum has pushed higher into second place

Ripple’s Market Cap Further Slips Behind Ethereum as XRP Price Prediction Stalls
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Contents

Ripple, and its native token XRP, have been stuck in a bit of a price vacuum over the past few weeks and months as many other coins have managed to break such marks. Sitting between $0.30 and $0.33, XRP has actually started to even lose ground on Ethereum in terms of market cap.

The third-ranked coin by market cap has in the past managed to over take the smart contracted-based blockchain as it surged in interest and growth in the recent past, but now it has fallen back by nearly $2 billion.

In terms of price prediction, XRP has a lot of hope and positivity surrounding Ripple’s efforts to make it a staple of banks going into the digital age, but it has stalled in its own growth recently, which is surprising seeing as other altcoins have doubled in 2019 alone.

XRP’s sticky situation

There was a small drop in the market last week which was halted when Bitcoin managed to keep above $4,000, but XRP also tested an important resistance. After testing the $0.3000 support, XRP’s price started a short term rebound against the dollar.

The price traded above the $0.3050 and $0.3080 resistance levels. The price even traded above the $0.3100 level, but it faced a strong resistance near the $0.3120 level. Besides, the price even failed to test the $0.3120 level and the 100 hourly simple moving average. A high was formed at $0.3113, and later the price started a downside move.

XRP is especially low currently, testing its floor rather than the ceiling, which has been seen closer to the $0.33 mark, but what is not helping the coin get past any of these resistance marks is its drop in market cap.

Ethereum taking the initiative

It is difficult to tell if Ethereum is making ground on XRP’s market cap based on its own growth – which has not been astronomical in terms percentage gains in the last few weeks – or if it has to do with XRP losing its own worth and value in the eyes of the market.

Ethereum is facing some major changes in the near future, and it could be that early investors are starting to look for a cheap deal as they prepare for the Casper upgrade and the change to Proof of Stake. Ethereum is bound to make big ground when that happens.

Ripple may not admit it, but having XRP as the second ranked coin above Ethereum would be a big deal for them as it adds a lot of legitimacy in the general market and helps in boosting their own worth and value as a company looking for more partnerships.

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