Funding for ICO’s (Initial Coin Offerings) has seen its hardest dip since after the all time high prices. Research from Autonomous analysis shows that in the month of August, startups raised $326 Mln’s, which is the minimum amount since May 2017.
According to Autonomous analysis, Ethereum ‘ETH’ blockchain-based ICO’s are recognized because the spark for the ETH price hike in the year 2017. However, they’re presently the only reason for the currency’s price downfall, as some ICO’s cash out for the related expenses amid considering the market.
The new analysis comes as legislators and regulators globally are having increased concerns related to the ICO’s. Last week, Members of the Parliament in Europe along with the blockchain consultants considered attainable laws for the ICO’s. One member pointed to the “dramatic increase” of ICO volumes in 2018, despite the increasing number of fraud cases being filed.
Chairman of the the European Commission’s ‘Peter Kerstens,.’ aforementioned that the actual fact that ICO tokens aren’t “intermediated,” which means that there’s no third party between issuers and investors and is also the main focused point of concern from a regulative perspective.
Another recent report from Belgian mentioning that ‘Think Tank Bruegel’ last week meeting with unified European Union legislation on digital currencies, ICO’s, and a lot of scrutiny on how crypto’s is distributed to investors.Bruegel reportedly notes that the virtual nature of digital currencies limits the events of laws, whereas entities operating digital trading platforms may face stricter rules which even includes a complete ban.
The Australian Securities and Investments Commission ‘ASIC’ also disclosed its plans to extend scrutiny of digital currency exchanges and ICO’s in its “Corporate Plan” as revealed last week. Additionally, the agency is planing to ensure any “threats of harm” from the nascent business migrated as a part of its regulative remit.