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Distribution, regulation and ICO – cryptotrends of 2019

Cryptocurrency reached its height of popularity and price in 2017, its initial coin offering stimulated the creation of tokens and affected the infrastructure of all cryptospace.

But after a steep surge, a downturn began. By the summer of 2018, market capitalization had declined by 55% compared to the beginning of the year. The maximum decline was recorded in early April and amounted to 70%.

ICO evolution

However, despite such significant downturns and increases (within 60%), they are within the norm limits.

One of the differences between the cryptocurrency and goods, stocks and indices is the volatility of its value. If we assess the situation from a technical standpoint, at this particular moment the cryptocurrency value has reached the lowest level. In charts that show the position of virtual assets today there is a possibility to see the formation of a figure that can become a reversal curve with three vertices.

According to forecasts, the completion of the nominal value growth will take place at the end of the summer. Today, near to the currency space is active. In particular, ICO announcements are held, among which there are projects aimed at optimizing the interaction of a wide range of users. The volume of funds raised as a result of ICO last year amounted to $3.2 billion, and if we’re to believe the forecasts for 2018, then there is an increase of 55-60%.

Distribution of cryptocurrency market resources

When the cost of bitcoin, which is the most popular cryptocurrency, drops, there is a tendency to diversification, that is, the distribution of all available resources in order to avoid possible risks. After researching the market, investors tend to invest in the following areas:

• currencies, which, according to Coinmarketcap, hold leading positions in the capitalization rating;

• prospective cryptocurrencies from the 50 most popular ones;

• young or not widespread among a wide range of currency users.

As for the little-known assets, in the last year their share has increased almost three-fold. In the list of cryptocurrencies closest to bitcoin, Ethereum, or so-called ether, draws special attention today. It’s interesting, that in early 2018 bitcoin and ether had a gap of 70 to 300%, which indicates a high volatility of investment in the latter.

Experts predict that by the end of 2018, the following changes will take place in the cryptocurrency market:

• Bitcoin will take a quarter of the market;

• Ether will take about 15%;

• BitcoinCash and Ripple will take about 10%.

Redestribution of deposits will continue in the future

Those who know the structure of allocation of funds in the cryptocurrency market, predict that the growth of the currency value which is outside the top ten will be the only stable trend.

Regulation by the state

In the future, state structures will continue to manage cryptocurrencies. Today some countries accept such innovation, while the others ignore or reject it.

Neutral with respect to the cryprocurrency are: USA; India; Russia; Ghana; Nigeria. Neutral countries take steps and measures aimed at determining the financial nature of currencies, and also taxation and all related legal issues.

Among those countries whose attitude to cryptocurrency is positive are: Japan; Canada; Singapore; Australia; Switzerland; South Africa; Venezuela.

The list of negatively-minded countries includes the EU, China and South Korea.

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