Initial coin offerings remain incredibly popular. Despite regulatory opposition in some countries, the industry continues to grow. Recent statistics show the US is a far less favorable region for this type of fundraising. Instead, Singapore is taking the lead, and Switzerland seems a small nudge as well.
Singapore Sees Many Initial Coin Offerings
Regulatory developments affect the cryptocurrency and ICO industry. The US is actively cracking down on initial coin offerings. This is especially true if securities fraud is suspected. Numerous projects have been shut down or investigated in recent months. This makes the region far less popular for ICO purposes.
Statistics by Elementus seem to confirm things are changing. Singapore is now the world’s leading region for initial coin offerings. The US remains in second place, and the UK is losing traction. Russia is on the verge of dropping off the radar altogether, despite an initial uptick during late 2017. Statistics for Switzerland remain flat, albeit seem to inch up ever so slightly.
This also means the ICO capital is no longer flowing to the US first and foremost. Singapore’s initial coin offerings attract the big money, as 17 projects took place during August of 2018. All projects combined – from all countries – raised $1.5bn during that month. This is on par with the amounts raised during 2017’s cryptocurrency bull run. An interesting sign, although a bearish sentiment remains present where Bitcoin and altcoins are concerned.
Politics Might be at Play
The shift in ICO projects may be part of a bigger picture. President Trump appears to be isolating the US from the rest of the world. Economic sanctions are being issued left, right, and center. These developments, while not related to initial coin offerings, make investors very nervous. It is also a worrying sign for companies looking to raise money through less than traditional means.
Additionally, regulatory scrutiny plays a role of importance. US Government officials are clamping down on ICOs. Concerns regarding selling securities without a license appear more than warranted. Furthermore, there are numerous scams disguising themselves as ICOs which need to be weeded out accordingly. Mor regulatory pressure seems likely at this point, especially through Operation Cryptosweep.
Despite this shift, the ICO industry remains under a lot of pressure. Most projects are facing a deficit compared to the money raised initially. Numerous projects are liquidating their ETH holdings at an accelerated pace. As such, the Ethereum price has been driven down, which explains part of 2018’s bearish market pressure. The remainder of 2018 will be quite telling for initial coin offerings and cryptocurrencies alike.
Do you think the regulatory issues that are currently holding back ICOs in the US will ever be resolved? Let us know in the comments below.
Images courtesy of ShutterStock