Digital Currency Sales Hit $13.7 Billion in Only 5 Months!
PwC’s strategy and consulting division, Strategy and Crypto Valley Association in Switzerland partnered together to release a report showing that digital currency sales have skyrocketed. In the first 5 months of 2018, the numbers show that the sales were at an unprecedented $13.7 billion.
Analysts believe that the underlying cause of the jump are the numerous technology startups in the blockchain scene all over the globe. These startups have managed to raise funds by selling cryptocurrencies, or tokens to their investors via Initial Coin Offerings (ICO). In so doing, these tech startups successfully bypassed banks and venture capital firms as middlemen.
Digital currency sales make utility of blockchain, the revolutionary technology behind bitcoin and various other digital currencies. In essence, blockchain is a digital ledger that makes it possible for users to make secure, recordable transactions.
2018 has been heralded as an amazing year for those in the digital currency space because of astronomical numbers recorded so far. This year’s showing has topped last year’s total of $7 billion. Telegram, the popular messaging company, is said to have contributed massively to the success. The messaging service was founded by Russia-born impresarios, Nikolai and Patel Durov, back in 2013.
Without tokens, Telegram successfully amassed $1.7 million. Another company, EOS, which is an infrastructure that handles decentralized apps managed to raise a little over $4 billion in a year. Notably, EOS’s token offering started right in the mid of the last annum.
In the report, the researchers indicated that out of 3,470 ICOs that have gone public since the venture started out in 2013, some 30% have been able to close successfully. The remainder have been delayed or lost momentum as the ICO process was ongoing.
In summary, one gets to gain a comprehension that ICOs have become acknowledged by the U.S. Securities and Exchange Commission. In Europe, the Swiss are considered the frontrunners in the ICO talk. However, the UK managed to catch up on a volume and numbers scale. In the UK, there were about 48 registered ICOs which raised an impressive $507 million.
In America, the SEC has made public their willingness to crack down on companies seeking fraudulent funds from investors through the guise of making investments in ICOs or virtual currencies. Companies that have managed to raise cash aplenty without clear-cut guidelines on how they were able to do so have also been subpoenaed.
Despite the fact that some regulatory uncertainty exists, Autonomous NEXT remains hopeful that the impasse will be resolved. Some states like Delaware, have become havens for cryptocurrencies due to their willingness to facilitate such activities. Autonomous NEXT made a point of indicating that despite the attempts by Western regulators to tighten the playing field, there still exist numerous other states willing to be something akin to Delaware.
The launch of Bitcoin prompted heavy investment in the cryptocurrency market from 2009. Since then, the world has experienced a paradigm shift with regards to matters finance. An impressive bitcoin rally in 2017 attracted numerous investors and critics alike. There were a couple of fears expressed a possible bubble.
In 2018, there has been a notable rise by mid-stage companies sporting 50-250 employees, when it comes to tokenizing a couple of their assets to aid operations. Autonomous NEXT also shared that they expect late-stage companies to join the cryptocurrency mix, starting next year.
Earlier on, fears were expressed about the growing regulatory crackdown on cryptocurrencies. This was after the government expressed doubts about the transparency of some transactions and the possible risk of scams.
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