8 months ago
The global professional services firm PwC has released its sixth ICO/STO Report. The paper, on initial coin offerings (ICOs) and security token offerings STOs, shows stagnation from mid-2019 on.
The sixth ICO/STO Report (Winter 2020 edition) was compiled by Strategy&, PwC’s strategy consulting team, in cooperation with the Crypto Valley Association Switzerland. It says that in the first ten months of 2019 more than 380 token offerings were settled as ICOs, STOs or initial exchange offerings (IEOs).
After a record high 2018, the global volume of tokens declined between January and October 2019 to US$ 4.1bn. “For crypto fundraising instruments to regain momentum, greater regulatory clarity is needed. In addition, offerers must upgrade their infrastructure, for example for exchanging tokens or for reliable market data,” explains Andreas Pratz, Partner Financial Services of Strategy&.
Global volume stagnant in Q3 and Q4
The digital asset market continued to grow solidly in the first half of 2019, with market capitalization hitting a high of US$ 370bn at the of June. In the middle of the year the total fundraising volume of ICOs and STOs fell from around US$ 1.322bn in May to US$ 151m in June. Up to the end of October, the average monthly fundraising volume fluctuated around US$ 171m. For comparison, the monthly average from January to May 2019 was US$ 653m.
Despite the overall stagnation in token offerings from June to October 2019, IEOs have significantly increased their relative share in the number of all completed offerings. This growth indicates increasing institutionalization and establishment of IEOs as a fundraising instrument based on blockchains.
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