Earlier in the month of March 2019, the Pricewaterhouse Coopers (PWC) has published a report in collaboration with the Crypto Valley to provide a strategic perspective on the initial coin offering (ICO) and the security token sectors (STO). The report states that the STOs are not fundamentally different from the ICOs estimating that the combined total rise of both the sectors is almost $20 billion in the year 2018. The report has noted that over 1132 of the ICO and the STOs have successfully took place in the year 2018 and that more than double the 552 offerings occurred in the year 2017. It has been found out that the total raised amount by the STOs in 2018 has tripled the combined sum generated during 2017, just two ICOs accounted for 29 percent of the total raised in 2018 having Eos raising $4.1 billion while Telegram has raised $1.7 billion. In spite of the record sum rise, the report states that the total raised and the number of offerings has declined significantly while in the latter half of 2018.
Pricewater Coopers (PWC) states that the STOs do not fundamentally differ from the ICOs as containing a more mature and regulated form that combines many features of ICOs include low entry barriers for the investors and the traditional venture capital private equity fund-raising characteristics. The report also throws the spotlight on the fact that the trading and the exchange infrastructure must improve in a bid to facilitate the growing popularity of the STOs as an alternative to primitive funding practices and additionally the market participants will likely come to demand additional services like the flexible custody solutions and the market data services. The report as well notes that two of the STOs took place in the year 2017 that raised a total of approximately $22 million and the 28 STOs have raised $442 million collectively in 2018.