ICO’s continue to boom as more tokens and coins are evident. On Coinmarketcap, and at the time of writing, over 1500 cryptocurrencies are listed and trading. According to Fortune, nearly 50 percent of 2017’s Cryptocurrency ‘ICO’ Projects have already died. They report that “as many as 75% of all startups backed by traditional venture funding fail, and 30 to 40% of those take all of investors’ capital with them.”
With the high ICO failure rate and the craziness of Bitcoin investors, regulators are setting guidelines or passing laws. Here is the Statement on Cryptocurrencies and Initial Coin Offerings by SEC Chairman Jay Clayton tabled during December 2017 :-
“The world’s social media platforms and financial markets are abuzz about cryptocurrencies and “initial coin offerings” (ICOs). There are tales of fortunes made and dreamed to be made. We are hearing the familiar refrain, “this time is different.”
The cryptocurrency and ICO markets have grown rapidly. These markets are local, national and international and include an ever-broadening range of products and participants. They also present investors and other market participants with many questions, some new and some old (but in a new form), including, to list just a few:
- Is the product legal? Is it subject to regulation, including rules designed to protect investors? Does the product comply with those rules?
- Is the offering legal? Are those offering the product licensed to do so?
- Are the trading markets fair? Can prices on those markets be manipulated? Can I sell when I want to?
- Are there substantial risks of theft or loss, including from hacking?”
Read the full statement – Click Here
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