Topic: [2017-08-01] 20 New ICOS Announced Despite SEC Warning (Read 2855 times)
The recent popularity of so many ICOs in different forms and types is a testament to the fact that people are really so excited in the blockchain technology that they can be so trusting with their hard-earned money...but we have to be careful because not all of these projects would be successful. There has to be a need for balance here. I am not against regulation if the purpose is to protect investors and to expose scam artists.
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Last week, SEC announced that some Initial Coin Offering (ICO) tokens could be considered securities. This means startups catering to US citizens would need to abide by current regulations and register with SEC. However, it appears that many firms may be ignoring SEC’s warnings. They may push forward with their token distribution events regardless of the rules.
According to a tokendata.io, there are about 120 upcoming/active token distribution events for 2017 and roughly 20 announced since SEC issued its warning. Several ICO’s are also about to begin their token distribution. These include, Groceryx, Corion, Eros, and many more.
According to SEC’s considerations on the matter, most of the aforesaid tokens may not fall into their regulatory framework. This means some tokens do not genuinely fit into the “securities” category. For instance, most crypto-tokens do not grant equity in a company. They also have limited disclosure requirements.
Courtesy of Bitcoin News.
Introducing an ICO and doing the right things that should be done can be one of the most profitable things to do online. Imagine there were many ICOs which crossed more than $10 millions and there was one which was able to get more than $200 million...what about that?
There is no question that there is a big appetite for ICOs in the market and the recent announcement of SEC on its official stand on ICO has not stopped new ICO introductions and there can be more in the coming months.
As analyzed by some experts, there are many ways to get away from the SEC warning as the word security has its strict meaning in the legal parlance. The best thing to do for a team behind an ICO is to always work with their legal consultants so they won't have any legal conflict later.
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