Dubai: Initial Coin offerings (ICO), the unregulated means by which funds are raised for a new cryptocurrency venture, may also lose its sheen amid expectations of increased regulations.
Last year, ICO fund raising surged to $6.8 billion (Dh24.97 billion) from $151 million in 2014, 2015 and 2016 combined.
“We believe that scrutiny of ICO, by all the leading regulators, will increase, which could potentially cap the investment going into this area. Recent fluctuations in the value of issued coins has highlighted the risks in the sector, and buyers of ICOs will be looking for more clarity before investing. This does not mean that we think this sector will shrink or retreat,” Konstantinos Anthis, head of Market Research at ADS Securities, said.
However, Khurram Shroff, chairman of International Blockchain Capital Group, disagreed with Anthis.
“I believe this will be a record year with over 30 ICOs being launched every day globally. With more in the pipeline, the number will only get higher,” Shroff said.