Some new cryptocurrency fundraising tools which should have “replaced” initial coin offerings (ICOs) have already failed and may never recover.
STOs Have ‘Dropped Off The Map’
That was the conclusion of fresh research which studied cash injections in the cryptocurrency and Blockchain sphere for the month of August.
Published by ICO research firm Inwara, the statistics showed that one ICO alternative in particular – Security Token Offerings (STOs) – had all but disappeared.
According to the data, total industry funding stood at $206 million in August, but STOs accounted for just 0.28% of that, or $576,800.
ICOs themselves, already known to have ‘died’ due to an ever-increasing climate of regulatory scrutiny, still managed 9.64% ($19.85 million).
By far the largest source of financing – over half the total – came from venture capital. Second largest were so-called initial exchange offerings (IEOs) on 38.35%.
“The beginning of H2 2019 has witnessed token offering projects pivot towards Initial Exchange…