The Discussion On How ICO Funding Hit A Record $800 Million In Q2 2017
A detailed note on the ICOs and regulations took up by China. The details are quite interesting
Where Are The ICOs Headed?
It has been observed that incase a ban initiated by China’s central bank is marking the end to the first era of ICOs as the early gold rush before the regulators arrive then Q2 2017 is sure to turn out to be a peak quarter in the history of the industry as the total amount raised by startups via ICOs which are thereby known as token sales and that involve the sale of those newly minted crypto coins based on the Ethereum reaching nearly $ 800 million in value during the three months as it was according to a report from the crypto industry news site CoinDesk. While it is combined with the first quarter the publication has said the total ICO funds raised during the first half of the year coming in at $ 1.13 billion. Thereby CoinDesk’s ICO tracker shows that 2017 to date has seen more than $ 1.7 billion raised by token sales with a previous report from Goldman Sachs estimating more was raised via ICOs in the first half of the year.
Therefore it is here CoinDesk estimates that $36 million was then raised by ICOs in the first quarter of 2017 as they saw quite a jump because three of the largest token sales in history took place in June which were Bancor ($153 million), Status ($95 million) and TenX ($83 million) as they were central to the overall growth. Ultimately the current quarter which is still a few weeks to run and already CoinDesk estimates that around $65 million has been raised from ICOs. As it came with big sales from Kik ( $125 million) and Kyber ($60million) among others where the total raised in Q3 may well top the previous quarter as the big question is what happens next.
ICOs Talk About Themselves
It is thereby observed that not only has China banned all ICOs pending an investigation as they could return in a regulated fashion but the SEC in the US and financial regulators in Singapore, Hong Kong, Korea, Canada, and Russia are among those looking into whether ICOs fall under securities regulations.
Hereby that uncertainty has seemed to likely dampen the mood for token sales until a more structured framework for them appears as the likelihood is higher quality ICOs while the lower quantity of token sales themselves, CoinDesk director of research Nolan Bauerle in a statement said, that concerning the supply of ICO tokens, there are two important forces at work where the first is market-based from the growth of analysis and key price indicators emerging from new professional buy-side cryptocurrencies. Therefore the effect of this market approach will likely be positive for the quality of new tokens. It is here that the other force is regulatory from both the SEC guidance and the China ICO ban will likely be negative for ICO quantity.
Role Of China In ICOs
To sum up, China has taken the lead on regulation at this point where he believes this might leave a door open to crypto-focused entrepreneurs in other parts of the world as if these effects are similar to those events that had occurred after China had regulated its local Bitcoin exchanges.
Moving forward he further explains that Chinese regulators are having a history of moving early and aggressively in cryptocurrency regulation as the capital controls from the PBoC for China-based exchanges that have failed to have important industrial growth ramifications going beyond a slowdown of Yuan-Bitcoin exchange volume. He added that while the controls led the Jan-July trade volume to fall from $ 9 billion to less than $ 1billion Bitcoin and other cryptocurrencies rallied 4X in that period. Here in a way perhaps ICO regulation is needed and a full ban is a huge gift to the US, Korean, Japanese, and European investors and entrepreneurs
Wrapping Up The Discussion With A Quick Take On ICOs
Here is one of the most exciting aspects of the boom in crypto coins and the emergence of ICOs is that there is precious little direct precedent even as the so-called experts are making assumptions and guesses for the future. Here what does seem clear however is that we may already have witnessed peak ICO season as the wild west of financing making a move towards quality control. Therefore it is here that the ICOs are taking the world by a storm. We have more details in the posts that are scheduled for the future. So stay tuned.