On March 31, it was reported that proceeds from initial coin offerings (ICOs) have fallen dramatically over the course of the past year. In the first quarter of last year, ICOs generated nearly $7 billion, but in the first quarter of this year they have earned less than $120 million. This represents a nearly 60-fold decrease. According to the report, two factors played a role in the decline. First was the long-standing bear market for cryptocurrencies. Jalak Jobanputra, who is one of the founding partners of Future Perfect Ventures, has indicated that current market conditions have significantly affected venture capital valuations. But also playing a role in the decline has been the fear that government regulators could take actions against ICOs that were not government-compliant. Just this February, the U.S. Securities and Exchange Commission (SEC) filed charges against a digital currency company called the Gladius Network. The SEC has accused the company of selling unregistered securities. The report further indicated that the majority of recent ICOs have failed. Of the 2,500 offerings that have been initiated since the beginning of 2017, only 45% were successful. What's more, of the successful ICOs, only 15% of them are currently trading at or above their offering price. According to Joshua Ashley Klayman, who is a consultant and lawyer named in the report, ICOs may eventually disappear. But this does not mean that the market for digital assets will. Other investment opportunities exist, such as security token offerings (STOs), which have received positive interest from both investors and regulators across the world. In the United States, those involved with token sales further face the problem that they have to deal with two sets of regulators: both at the federal level and the state level. For example, in recent years both Deleware and Wyoming have passed state-specific regulations relating to digital tokenization. Spotlighting the troubles of ICOs, a young man who failed to fund his startup through an ICO recently tried to sell the company for $60,000 on eBay. The blockchain-based project is called Sponsy, and its owner insists that the company is ready to initiate both an STO and an ICO.