Back in 2016, the United Kingdom voted for the so called Brexit (Great Britain outside the European Union). The Conservative Prime Minister, David Cameron, called for a referendum in order to let Britons decide whether to keep or not in the regional block. In a political movement to gain support, he had to leave the office when the Brexit finally won against the ‘remain’ option 51.89% to 48.11%.
ICOs The New Fundraising Method
This situation has created a difficult situation for companies that were located in Great Britain because it was part of the European Union. Now that the UK has decided to move outside the EU, a lot of companies are searching new cities in the EU in order to settle their offices.
New investors are finding it a little bit difficult to get funded amid uncertainty about the new laws and rules. That’s why Initial Coin Offerings offer a different possibility to get funded by creating a token. Businesses are taking it into account when they need to fund a new project.
Przemek Skwirczynski, the ICO Rocket associate, said:
“Cryptocurrencies offer companies a chance to overcome the uncertainty surrounding the Brexit deal and continue to receive the investment. Currently, this is small scale but as you see the interest in ICOs picking up I am hoping this will become a very mainstream way of financing.”
2017 the Year of the ICOs
2017 was a very good year for ICOs. The total amount of money invested in ICOs during this year was $3.7 billion dollars. The total number of ICOs as of 31st December 2017 is 235. September was the month with the most money risen with almost 1 billion dollars.
Several regulations are starting to modify the world of the Initial Coin Offerings. It could help the United Kingdom to have a lighter policy towards ICO and let it cover the lack of traditional investment caused by the Brexit.
According to the British Chambers of Commerce Director Adam Marshall, “Brexit uncertainty still lingers over business communities, and is undermining many firms’ investment decisions and confidence.”
Image Source: news.bitcoin.com