Blockchain has become a slogan in the startup community and multinationals similarly. Numerous benefits come with this technology has caused business and the governments to embrace, explore, and invest in it.
In contrast, there is a change of event that occurred in 2019 concerning the amount of invested in blockchain technology and the firms behind it. In 2018, there was an incoming peak of funds with $5.5 billion capital raised, but in 2019 there was a decline, with online less than $3 billion of money came into the ecosystem.
Many other reasons can explain this massive decline in capital. The bullish hysteria within the Bitcoin had finished, and the value of Bitcoin reduced from all-time high of about $20,000 to a low of $3,100.
Another reason that resulted in this decrease is the initial coin offering lost its charm. Many other factors in the surrounding resulted in the overall reduction in funding of the fin-tech sector, which contributed to the fall of funds for blockchain firms a well.
In the year 2017, it is when ICOs began to operate. The majority of its funding came through blockchain companies that came through it. Bancor protocol’s inventive token sale of $153 million develops a condition for the new generation.
Tron had completed its ICO in 2017, moving it to become of the significantly recognized altcoins slowly. The ICO became a standard feature, as a massive sale of the token was taking place in countries such as China, Germany, Israel, Singapore, the United States, and many more.
The year 2017 was be beginning of an increase in cryptocurrencies, blockchain, and ICOs, the year after it, 2018, was year of market changes. The increased prices of crypto that reached all-time high in the month of January the year 2018 started falling, with high hopes of investors that the crypto was a channel to get wealth quickly scheme.
From the data from the market, there was a sharp drop in the number of the ICOs for the high funded blockchain companies. The institutional who had invested in Bitcoin started being interested in funding, controlled by the fear-of-missing-out.
Robinhood and Coinbase had persistent with their massive fund drive spree. A significant producer of ASIC, Bitmain, had raised $340 million in the pre-IPO round, doing its valuation to increase up to $12 billion. Besides, falling victims to reducing mining needs, the estimate dropped quickly.