The PwC, with the support of the Crypto Valley Association, recently published the 5th Global ICO/STO report. The document issues an assessment of the digital asset market in the first five months of the year and offers strategic information on the market for cryptocurrencies during the period. One of the main conclusions is the end of the “crypto winter”.
According to the released document, the resumption of the market was favored by the advance on the regulation, added to the greater interest of institutional investors in digital assets. Besides, although the report does not mention specifically about the currency of Facebook, the “Libra effect” is being widely debated. In the first five months of the year, bitcoin had a 120% increase in value.
The report also mentions the token offerings in the period. From January to May 2019, 250 offers were accounted for, which grossed US$ 3.3 billion. In the whole year of 2018, there were 1.132 offers, which raised more than US$ 19.5 billion. The largest tokens offering in 2019 was from Bitfinex, that raised US$ 1 billion. With that, it got the third place among the biggest offers ever released. Before the latter, there were EOS and Telegram.
Comparing the trends, the conclusion is that the sector of digital assets in 2019 can overcome the total raised in 2017. However, the perspective is that it should go short than the US$ 19.6 billion handled and moved in 2018.
IEO as a major change
The report also cites the Initial Exchange Offerings (IEO) as a new way to raise resources, whereby an ICO or STO is conducted on one or several crypto exchanges platforms. The report highlights that although it has existed since 2017, only now the IEO have earned traction.
According to the document, the path of the IEO “emphasizes a higher degree of institutionalization of the large crypto exchanges around the world as pillars of the global digital asset infrastructure. This can also be seen as a response to established exchanges that become crypto. “
In this scenario of greater institutionalization of exchanges, the document highlights the measures taken by exchanges as protection for eventual hacks. And it also mentions the Binance Security Fund (SAFU) that covered losses of US$ 41 million in 2019.
Additionally, countries around the world have advanced and improved regulation. As an example, in June 2019, the intergovernmental organization Financial Action Task Force (FATF) presented new KYC/AML standards for crypto-service companies – such as exchanges. And the G20 countries have already committed to adapt.
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