The Biggest Problem for ICOs? In 2018, It Was Their Own Investors

Simon Seojoon Kim is CEO and partner at Hashed, a crypto-focused accelerator focused on community building and impact investing. The following is an exclusive contribution to CoinDesk’s 2018 Year in Review.  At the beginning of 2018, the blockchain community reached the pinnacle of the ICO bubble. The slogan of ICOs, which promised that “anyone can invest in an initial project,” sounded wonderful and future-oriented. However, as the prices of most ICO tokens continued to tumble over the past year, it appears that the first chapter of this grand experiment has ended in failure.…

RIP ICOs: 2019 Will Be the Year of Enterprise Blockchain Tokens

Ajit Tripathi is a partner at ConsenSys, where he specializes in global financial services business development and corporate venture strategy. The following is an exclusive contribution to CoinDesk’s 2018 Year in Review.  One year ago, I wrote an article for CoinDesk in which I humbly argued that the price of ether didn’t matter and what everyone in the blockchain community should focus on is building useful applications instead. Hate to say I told you so, but… I did. A few short months later, CryptoKitties were chased away by the bears, the…

Russian Draft Bill Blocking Suspicious Financial Websites ‘Could’ Cover ‘Scam’ ICOs, Experts Note

A group of Russian members of parliament (MPs) has introduced a draft bill on blocking suspicious financial websites on Tuesday, Dec. 11. Russian crypto media outlet Forklog believes it can encompass “scam” Initial Coin Offerings (ICO). According to the document, the country’s central bank will be able to call to block websites as soon as they do not comply with the current legislation. Moreover, the state bank can apply to the court in order to block the page on the basis of pre-trial settlement. Websites that fake existing banks’ URLs,…

ICOs Can Be Effective, But ‘Securities Laws Must Be Followed’

United States Securities and Exchange Commission (SEC) Chairman Jay Clayton has said that Initial Coin Offerings (ICOs) “can be effective” but that “securities law must be followed.” Clayton spoke on the subject during a speech about the SEC’s activity this year at the BLANK. In regards distributed ledger technology (DLT), digital assets and ICOs, Clayton stated that this is an “area where the Commission and staff have spent a significant amount of time.” He then further added that he expects “that this trend will continue in 2019.” Clayton underlined that…

Celebs and ICOs: The Makings of a Dangerous Duo

Like many different industries, Hollywood’s involvement with cryptocurrencies and Initial Coin Offerings (ICO) has become a reality and a number of celebrities have looked to capitalize on the surge in interest and potential money to be made. As Cointelegraph has previously explored, some celebrities have gone on to achieve success in their crypto-related ventures, while others have been embroiled in the ensuing mess of failed and fraudulent projects. Caught up in Centra Tech Two major names in the entertainment industry fell victim to the fallout associated with a fraudulent ICO…

South Korea’s Finance Ministry Considers Taxing Crypto and ICOs, New Minister Reveals

South Korea‘s Finance Ministry is considering taxation on cryptocurrencies and Initial Coin Offerings (ICOs), daily English-language newspaper The Korea Times reports Monday, Dec. 3. Hong Nam-ki, South Korea’s new Minister of Economy and Finance as well as new Deputy Prime Minister, revealed that а crypto taxation plan will be finalized according to global taxation trends in the industry. Pointing to the current ICO ban in South Korea, the deputy prime minister stated that the authorities will also form a new stance to the crypto industry, based on careful consideration of…

At Least 12 $50 Million+ ICOs Still Haven’t Launched Tokens, Says BitMEX Research

At least twelve Initial Coin Offering (ICO) projects that raised over $50 million in their token sales have yet to launch, new data by cryptocurrency trading platform BitMEX revealed Nov. 21. In a mailing list circular, CEO Arthur Hayes identified well-known projects such as Telegram, Filecoin and Overstock’s tZero among the twelve big ticket ICOs still yet to determine when exactly their native token will go live. “These deals have massive valuations, and many of the most venerated token funds took down large chunks. It is unclear when, if ever,…

Colorado Securities Regulators Crack Down on Four More ICOs for Alleged Illicit Practices

The Colorado Division of Securities has filed cessation orders against four Initial Coin Offerings (ICOs) allegedly involved in fraudulent and illicit practices, according to an official announcement Nov. 20. Colorado Securities Commissioner Gerald Rome issued the new cease and desist orders following investigations by the Division’s ICO Task Force. Rome has issued 18 cessation orders to ICO projects offering unregistered securities since May, 2018. According to the announcement, at least two more orders are still pending. The recent orders affected four crypto and blockchain-related firms; Global Pay Net, Credits LLC,…

ICOs under Pressure, May Liquidate for Fiat

Latest Ethereum News It’s a selling frenzy out there. Although we cannot exactly pin-point the cause of this massive sell off, analysts and market pundits are linking this to the protracted hash wars between Bitcoin Cash ABC and SV. It has a contagion effect on Bitcoin since they share the same hashing algorithm and with the former backed by Bitmain, the network difficulty of BTC is drooping dragging prices and ETH with it. That is one theory. 1/ There is a big misconception that ICO companies have liquidated most of…

Study: ‘Compliance Trilemma’ Limits Potential of ICOs

Initial coin offerings (ICOs) are facing a regulatory “compliance trilemma,” according to a recent study funded the government of Canada and the University of British Columbia (UBC). To prepare the report, the research team investigated the ICO space over the course of six months, focusing primarily on North America, but also delving into some other countries and jurisdictions. The team conducted 45 qualitative interviews with individuals in the ICO space, including representatives of the finance, law, and science sectors of the field. Per the study, ICO issuers face a “trilemma,”…