In the first quarter of 2019, financing by ICO decreased to one-fifth of the previous year.
According to the report, ICO procurement amounted to $ 118 million (KRW 133.8 billion) in the first quarter of this year. In the same period last year, it reached $ 6.9 billion (7.8 trillion won). These figures are based on the token data, the ICO data analysis site.
ICO is a method of financing using tokens that is simpler than conventional financing methods such as IPOs, as well as the fact that trading hours are 24 hours and 365 days, and that global transactions are possible. However, the decline in the amount of ICO procurement is due to the fact that ICO regulations are tightening in addition to the long-term downturn in the cryptographic market.
Last November, the Securities and Exchange Commission filed civil penalties for two ICOs that failed to register token sales. It was also analyzed that the case was the cause of the bitcoin plunge in mid-November of last year. In December, SEC chairman Clayton acknowledged that ICO could be an effective funding tool, but he also said he would not comment on the securities laws. For more information, please click here .