Sharp Moves Up in Crypto Market May Make ICOs More Attractive
All of the Top 10 cryptocurrency tokens on CoinMarketCap recorded at least 10 percent growth in trading on Friday, April 13, indicating that the crypto market still has legs and is blowing wind in the sails of upcoming initial coin offerings (ICOs).
Bitcoin (BTC) rose above $8,000 and Ethereum (ETH) broke above $500 for the first time since March 26. Total cryptocurrency market cap rose above $300 bln after jumping $52 bln since yesterday.
Several important announcements are thought to have contributed to the overall positive movement in cryptocurrencies.
For starters, a report by Indonesian fintech company Blossom Finance claims that cryptocurrencies are “generally permissible” under Shariah law, leading to speculation that many Muslim countries would ease regulations in the crypto sphere as a result.
Major Wall Street players moved into the crypto sphere. Billionaire investor George Soros may start to trade in cryptocurrencies via his family office. Venrock, the Rockefeller family’s official venture capital fund, announced a partnership with blockchain investment group Coinfund. Another Goldman Sachs executive reportedly left the finance giant to work with a crypto project.
These moves indicate that cryptocurrencies and blockchain are gaining recognition at the highest levels of global finance, which may spell their adoption by mainstream trading. This news is generally positive for ICO projects, which are set to benefit from the increased legitimization.
ICOs are increasingly being viewed in terms of existing legal frameworks, such as securities or commodities trading laws, and institutional tokenholders are increasing demands for information disclosure from ICO projects in which they have invested.