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A brief summary of crypto market trends in February

 

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This article is the executive summary of InWara’s monthly report-February-2019 and pertains the following details-

-ICO Landscape

-STO Landscape

-Mergers and Acquisitions

 

ICO landscape:The UK and Singapore still leads the ICO market

The crypto market space has been down in the doldrums for the past couple of months with ICO numbers tapering and overall bearish market trends prevailing. But this month, ICO numbers have picked up the pace reporting a 100% growth rate when compared to January 2019.


# of ICOs in February-19, country-wise

 monthly, report, ICO,STO, data Source

Industry Sector outlook 

Financial Services sector has dominated the crypto market ever since the advent of the first cryptocurrency Bitcoin. But in terms of number ICOs, it has taken a step back to the second position, as Trading and Investing, an allied sector to Financial Services, witnessed an incredible growth of 166% this month to capture the first position in terms of number of ICOs. 


# of ICOs in February-19, sector-wise

 

monthly, report, ICO,STO, data

Source 

It’s a whole different story in terms of funds raised, Financial Services sector single-handedly dominates the space and raised as much as 62% of total funds. Interestingly, UAE based blockchain start GCBIB was responsible for raising $142 million which inadvertently gave Financial services sector an edge.

STO landscape: STOs numbers recuperating

With the dramatic downfall of ICOs inadvertently caused by the crackdown of regulatory authorities, spawned the need for a token offering that is compliant with regulatory norms, this need fueled the rise of Security Token Offerings. STOs numbers in this quarter are likely to cross Q4 2018 numbers with already 19 STOs being observed so far. This upheaval of STOs is likely to continue this year as more regulatory authorities impose sales restrictions on ICOs to curb fraudulent activity.


# of STOs, quarter-wise
monthly, report, ICO,STO, data

Source

 A surprising development in the STO landscape this month is, how Energy sector dethroned Financial Services to achieve the first position and was responsible for as much as 13.34% of the total number of STOs this month.

# of STOs in February-19, sector-wise

monthly, report, ICO,STO, data

Source

This development was out of the blue as Energy is a relatively nascent sector in the crypto space when compared to much more mature sectors like Financial Services or Trading and Investing. 

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M&A: 2019 could witness more consolidations

Although in comparison to the previous month, the number of M&A deals dropped by 60% in February 2018. It is critical to understand the implications of the few deals that took place.

# of M&A deals, month-wise

 

monthly, report, ICO,STO, data

Source

 A majority of the deals that took place this month could herald the crypto market is maturing. The following are the noteworthy deals that could have future implications.

  • Kraken acquires Crypto Facilities- Kraken is a crypto exchange and is among the premier trading platform in the crypto space, its acquisition of Crypto Facilities which a London based trading and indexing platform, indicates Kraken’s goals of creating a one-stop-shop for all things crypto that has a global outreach. This is hardly Kraken’s first strategic acquisition in the crypto space, it was previously acquired as much as five blockchain and crypto startups (source).

  • Facebook acqui-hires Chainspace- Chainspace is a London based blockchain research startup that aims to augment the technology beyond its current use-cases and capabilities. Facebook had hired a majority of the startup’s employees to explore options for applying the technology to its platform. On top of this, Facebook also announced its intention of introducing its own stablecoin to its WhatsApp messenger platform to target the Indian remittances market, these are clear indications of Facebook taking block chain technology seriously. In 2019, the upheaval of interest in blockchain and crypto startups by established companies is likely to lead to market consolidation.

  • Coinsquare acquires StellarX- Coinsquare is a centralized crypto exchange and it recently acquired StellarX a decentralized exchange (DEX). Decentralized exchanges enable users to directly send tokens between each other without the need for a trusted intermediary. On top of this, DEX’s are much more secure against hackers and has lower transaction time and fees. This acquisition could herald a paradigm shift in the crypto space towards decentralized platforms that is beneficial for users.

Monthly report: February 2019

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