Every year assiduously, we have been producing one gem report after the other to keep on the top of the markets.
For the uninitiated, if you are here for the first time, we have been covering these studies from the perspective of ICOs, STOs, IEOs, the amount of funding flowing into crypto, and blockchain space, how many and why mergers and acquisitions are happening, etc.
On similar lines, this is 2019, and we are back with our historical fact-finding to give an edge over other market participants. But you have taken all these facts and figures with a grain of salt because accurate tracking in the decentralized world of blockchain is a bit tricky.
In this round-up of the cryptosphere for 2019, we will broadly focus on these themes, so stick with and do share it with others if you like it.
- ICO Landscape 2019
- Security Token Offerings (STO) Landscape 2019
- Cryptocurrency Market Trend Analysis 2019
- Private Funding in Blockchain Space 2019
- Mergers and Acquisition in Blockchain Space 2019
ICO Landscape 2019
ICO market started taking beating 2018, and now, by 2019, one can say it is down more than 50% compared to the year 2018. Most of this attributed to the unregulated fashion in which ICOs were launched and the resultant loss of confidence.
Notably, the USA, UK, and Singapore’s numbers have fallen off the cliff in comparison to the previous year highs. If you compare the number of ICOs launched in January 2018 and January 2019, there is a drawdown of more than 85%.
Also, the US has taken a beating in the number of ICOs launched in 2019, and it is clear behind the UK and Singapore. The situation in the US could be attributed to the stringent crackdown by the US SEC. Australia, Indonesia, and France have remained the same when you compare them year to year.
Financial services, trading, and new cryptocurrencies are the major winners in the ICOs as many ICOs in 2018 were launched in these areas only. Similarly, in 2019, too many ICOs are from the same area.
On the other hand, Blockchain, media, and Fintech are three areas that are facing the most contraction in 2019, when the year is just beginning.
There is also a sharp drawdown on the number of ICOs getting listed on the exchanges. From the number of ICOs getting launched on 5-10% ICOs are getting registered. Hence many investors are left with illiquid worthless tokens, which they cannot sell anywhere. The exchanges have not listed any tokens or ICOs without scrutiny because they don’t want to list unregulated securities on their platform and face wrath of the US SEC the way EtherDelta faced in 2018.
So in 2019, exchange operators are more prudent in their offerings. This is good for the exchange users, too, as they will be getting vetted tokens to invest.
STO Landscape 2019
Though STOs saw all the rage in 2018 because of many ICOs going bust due to SEC’s crackdown and their wrongdoings. This gave way to STOs, the new way of fundraising, but with regulations and regulators ON.
Coming in 2019, STOs should have performed better, but the reality is that they are down by 40%. This is not because of loss of interest, but because of the stringent compliance, one needs to adhere to launch STOs. ICOs are the easy and exact opposite of STOs.
But the failure rate of STOs has been low as compared to ICOs precisely because they were not launched like mad mushrooms springing up but with much more prudence.
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IEO Landscape 2019
Half-way into the year 2019, STOs and ICOs have taken a major beating, and there has been a rise in IEOs-initial exchange offerings
Initial exchange offerings were pioneered again by Binance, a lucrative alternative to falling interest in ICOs. The exchange will put the scrutiny team and vet the project thoroughly. It will run community poles also based on its scrutiny to list the winners finally.
However, I feel Binance did this to prop up its BNB token’s price, but in any case, the market players have embraced this new approach with exchanges like Bitfinex doing IEOs worth of billions for some projects.
Private Funding in Blockchain Space 2019
This lead to a shot-up of IEOs and ICOs taking a beating, but the overall capital entering the blockchain-based crypto-sphere has dwindled compared to 2018.
The private funding and dried out by the mid by 2019, and this could be because of the lack of confidence in blockchain’s ability to scale.
Also, most of the funds that came went to the US and Asia jurisdiction only barring a few here and there. But all these mostly replaced the direct token offerings. Upto 40% of the funds came from direct funding instead of toke offerings.
But overall, in comparison to previous years, the funding was down more than 100% in the blockchain projects, which is a matter of concern for the ancient industry like blockchain.
Mergers and Acquisition in Blockchain Space 2019
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