What Happened to ICOs?
The massively worldwide phenomenon known as ICO a few years back has been undoubtedly and completely passed into oblivion this year. Due to recent events, the facts are now known to many that uncontrolled fundraising have very serious consequences. For those still willing to try to grab the assets of investors in this way, they have been kept at bay with the many penalties the United State’s Securities and Exchange Commission wrote out over the past year.
However, the fact of the matter is that no one knew or even thought about the consequences spanning the years 2017 to 2018. Even now, two very huge projects, TON and KIN, are sinking because of the result of the onslaught led by the SEC. As such, it is unlikely that any decent, well-funded and legal organizers of fundraising campaigns will want anything to even do with ICOs.
I recently read a report by the well-known research company, CB Insights, that demonstrated an unusually large drop in the volume of funds being raised via initial coin offerings. Considering how the ICO boom of 2018 attracted upwards of $7 billion, only $371 million were raised last year. That’s basically around a 95% decrease in investment volume. Now consider this: Equity Financing of blockchain projects amounted to over $2.8 billion in the same year. The report also shows a significant increase in decentralized financing (DeFi). This isn’t to say that it’s the next big thing but assets on DeFi platforms currently do amount to a respectable $1 billion, compared to $300 million back in January of last year. No one really knows the future of the cryptocurrency industry. All we can do is guess and try not to make the same mistake (with ICO) twice.
In the world of Crypto, finding the right people to do the job can be troublesome and difficult at best. This is why at FIAT Exchange, we offer an all-in-one service encompassing everything there is to launching a token offering, as well as ensuring that everything is safe and transparent with all of the legalities done first. As a pioneer in the consensus industry, we offer the tools to democratize access to finance and through our platform, investors, start-ups and established companies are able to find opportunities they otherwise never would have.
At FIAT Exchange, we have consultants to help innovative start-ups, promising businesses and even well-established corporations launch their own Initial Exchange Offering, Initial Coin Offering, Security Token Offering or Reverse Token Offering effectively, efficiently and successfully. As a constituting body, we act as partners and assist each and every project from compliance, fundraising, and to final listing in our Digital Marketplace.
While there already are other operating equity crowdfunding platforms in the European Union, we are the first to expand to become a broker-dealer and introduce to our investors an alternative Smart Securities layer, offering a secondary market where investors can trade their startup securities.
If you are an Investor looking to unlock access in the FIAT Exchange ecosystem and discover new investment opportunities or if you are an Entrepreneur looking to raise capital, we can definitely help! Please feel free to contact us: support@fiatxs.com
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