According to a new report by PwC and the Crypto Valley Association, around 250 token offerings have been successfully completed up to May 2019. They have raised around $3.3B so far.
Token offerings were thought to be dying by the end of 2018. The capital pool was drying up. However, little did people know that this was only the case for ICOs. In 2019, two new attractive token offerings have become much more popular and trustworthy: security token offerings (STOs) and Initial Exchange Offerings (IEOs). Of course, IEOs have proven to be much more lucrative. Thanks to Binance and Bitfinex, these offerings have exploded in value. Bitfinex’s IEO alone raised some $1B.
A new report by PwC and the Crypto Valley Association makes the case that this trend is not slowing down anytime soon. From January to May 2019, there has been $3.3B raised in various token offerings.
Although the industry still has to catch up to 2017 levels which say ICOs raise some $7B, it still indicates that the cryptocurrency space has significant momentum. More importantly, it tells us that many investors are still hungry for new startups in the blockchain space.
Although STOs have been gaining in popularity, they have yet to reach the heights of IEOs. Yet, there’s evidence to suggest that IEOs won’t have longstanding influence. This is because they are not legally compliant, and are simply ICOs with extra steps. STOs provide us with a new, completely compliant framework that admits tokens as securities.
Overall, the new report by PwC and Crypto Valley Association should put to rest the assumption that capital-raising and crowdfunding in the cryptocurrency space are dead. In fact, it’s ready to explode. And STOs will surely lead the way.
Do you think this is just the beginning of the token offering boom? Let us know your thoughts below.
Image courtesy of PwC.