2017 Was the Year of the ICO—Now What?

As 2017 comes to an end, Floyd “Money” Mayweather’s affinity for initial coin offerings is back in the news. Perhaps the world’s most famous boxer, Mayweather promoted no fewer than three ICOs this year , one of which, organized by a company called Centra Tech, is at the center of a new class action lawsuit that claims the offering violated U.S. securities laws.

Recommended for You

  1. Four Amazing Things Gene Editing Did in 2017

  2. Physicists Demonstrate How to Reverse of the Arrow of Time

  3. It’s Waymo vs. Uber—Except in China

  4. Best Tech Books of 2017

  5. These Are Not Your Father’s GMOs

It’s emblematic of how the year treated this flashy new fund-raising scheme. After bursting onto the scene in 2017, ICOs will enter the new year as the subject of intense scrutiny from lawmakers and financial regulators who are, like many of the rest of us, trying to figure out how to make sense of a legal gray area in which billions of dollars are suddenly flying around .

An ICO involves selling digital units of value, called tokens, that can be passed between users of a blockchain network, the same way Bitcoin users move bitcoins (see “ What Bitcoin Is, and Why It Matters ”). The tokens are tradeable, which makes them seem a bit like stocks. But in some cases they can also serve as a way to pay for file storage or personal data management services provided by the members of a blockchain network—something proponents refer to as “decentralized applications.” ( What the Hell Is an ICO? ← Here’s a primer)

Unsurprisingly in a red-hot, unregulated corner of the financial world, ICOs saw their share of suspicious behavior in 2017. One of the most lucrative token sales of the year—a $232 million ICO for a project called Tezos, which promises to be an Ethereum-like system for decentralized applications— is now facing four separate suits by investors who allege that the organizers violated U.S. securities laws.

Related Story

What Bitcoin Is, and Why It Matters

Can a booming “crypto-currency” really compete with conventional cash?

Some governments have cracked down on ICOs. China, for example, banned them in September and followed the move by shutting down cryptocurrency exchanges, too (see “ Can China Contain Bitcoin? ”). South Korea hasoutlawedICOs as well, and it’s likely that more nations will follow suit next year.

The approach in the United States has so far been far more restrained. In July, the Securities and Exchange Commission released a report concluding that at least some digital tokens are securities and should be registered as such with the federal government. In the last few weeks, the SEC has stepped up action on ICOs. Last month it issued a statement warning that celebrity-backed token sales might be unlawful . (Sorry, Floyd.) Almost immediately after that, SEC chairman Jay Clayton said in an off-the-cuff remark that he had “yet to see an ICO that doesn’t have a sufficient number of hallmarks of a security.”

Shortly after the comment was made, the regulator stepped in and halted two ICOs. Clayton then issued a lengthy statement explaining the agency’s position on cryptocurrencies and ICOs, including a clear assertion that that not all tokens are necessarily securities .

So what are they, then? For the moment, they appear to be a quick way to put money in the pockets of those selling them—and potentially get into legal trouble in the process. Perhaps in 2018 we’ll find out whether they can be anything more than that.


17秒成功完成ICO!这个区块链防伪工具让你从此告别A货... 【猎云网(微信号:)】6月8日报道(编译:Mayfly) Devery是一家澳大利亚公司,基于区块链创建了检验产品真伪的工具。通过确保产品的真实性,它可以让电商用户和企业了解供应链的安全性。该公司最近成功完成了的ICO,在17秒内达到了硬顶(即本次众筹最大的筹集量)。 ...
Convert Png to Ico – 10 Best Online Tools for Quic... As a web designer, you know how important it is to convert png to ico quickly. That is why we have prepared a collection of ten best online tools y...
七部门叫停ICO后:4家平台率先宣布退币... 每经实习记者 边万莉 每经编辑 毕陆名 9月4日下午,央行等7部门下发了《关于防范代币发行融资风险的公告》(以下简称公告)。公告要求,任何组织和个人不得非法从事代币发行融资活动,加强代币融资交易平台的管理,各金融机构和非银行支付机构不得开展与代币发行融资交易相关的业务。 值得注意的是,公告明...
数字货币 | Telegram 发起 ICO 募资12亿美元,打造加密版“微信钱包”... 据 TechCrunch 报道,即时通讯平台 Telegram 计划发起自己的区块链平台及加密货币,为它的聊天应用和相关场景提供支付支持。 Telegram 旗下产品 Telegram Messenger 于 2013 年推出,是类似于微信、WhatsApp 的即时通讯软件,目前拥有 1.8...
Gecko Governance Receives Regulatory Approval for ... Gecko Governance , a regtech blockchain startup based in Ireland, has launched a new compliance solution called Gecko Crypto1 after receiving...
Technology Review责编内容来自:Technology Review (源链) | 更多关于

本站遵循[CC BY-NC-SA 4.0]。如您有版权、意见投诉等问题,请通过eMail联系我们处理。
酷辣虫 » 2017 Was the Year of the ICO—Now What?

专业 x 专注 x 聚合 x 分享 CC BY-NC-SA 4.0

使用声明 | 英豪名录