According to a Bloomberg report from September 10, the fundings of Initial Coin Offerings (ICOs) are falling in last 16 months. Analytical report form Autonomous Research indicates clearly that in August, startup project raised $326 million, the smallest amount raised since May 2017.
The boom in Blockchain-based ICOs in 2017 was the prime reason behind the rise in the price of Ethereum (ETH), noted Autonomous Research. Now, as some projects are cashing out worried over a bearish market, ETH price is also sliding down.
Globally this is a crucial time for ICOs, many countries are trying to regulate them through different legal methods. European Parliaments discussion on the possible regulation of ICOs is one such example. A member from the European Parliament pointed out the fact, despite the rising stats on fraudulent ICO projects, there is a “dramatic increase” in the volumes of ICOs in 2018.
Highlighting the fact that ICO tokens are not “intermediated”, Peter Kerstens, chairman of the European Commission’s Taskforce on Finetech said, there is no third party acting between issuers and investors, is the main concerning issue from the regulatory point of view.
The last week report from Belgian think tank stresses on the unification of E.U. – level legislation on ICOs, cryptocurrencies and more critical level examination of how the crypto is being distributed among the distributed. Explaining the difficulty in the regulation of crypto due to its virtual nature, Bruegel report notes, the entities operational on crypto trading platforms might face more stricter disclosure rules, maybe even a ban.
In the “Corporate Plan” published last week, the Australian Securities and Investment Commission (ASIC) presented the plans to increase the security measures for ICOs and cryptocurrency exchanges.