Topic: Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”? - page 3. (Read 3401 times)

I just don't like ICO , I don't feel it serves the vision of cryptocurrency on fair distribution , it is just like a pay to win game, you got more money you get more

That's mostly nonsense, a coin will stand on its own merit regardless if it what ico issued or mined. But both methods still have their pros and cons.

I think the blog author is overblowing it. Surely these are potential problems, but the view is one-sided. Cryptocurrencies may be pushed to shadow, but it won't be the apocalypse that author promises.

The difference between the older new coin' process without the Ico was that left those with some of their coin out there , no Exchange , and maybe half a dozen other processes in the works, pretty much just a general mess, and still no resources. The only difference with the Ico is that the coin is listed at at least one Exchange, The Exchange forced him to do a little bit of work as far as and announcements, placement of the wallet files, and a few other things, and lastly the teams at least now have some starting capital.

My most troublesome wallet, Lisk, was ICO based. They are still somewhat lagging behind a fully functional product, but their team is decent and still growing. Value reflects that, at least last month up today.
And I doubt that Chinese Government has any saying into all things regarding Lisk, since it is a mostly european located project!
Things would be worse if the United States start to act in a similar restrictive way.

Well he predicted this 2 days before it happened.

And specifically warned at the top of his blog that NEO was vulnerable.


All countries are being forced to enforce securities regulation same as was the case for FATCA. All this information is covered in detail at the following blog:

Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”?


Incorrect. Read the linked blog to learn about investment securities and more details. Follows is a summary.

There will be a banning of trading on the exchanges for the tokens which were issued by ICO (or any obfuscation of an ICO which is equivalent).

Tokens will be frozen on exchanges. Money will be recovered from issuers and some will be jailed. Some who promoted and/or traded large quantities of ICO-issued tokens will be fined and possibly jailed.

Use of ICO-issued tokens will be illegal because it is illegal to trade investment securities on an unregulated exchange.

So that means avoid IOTA, NEO, Qtum, EOS, ETH, Stratis, Decreed, NEM, List, Waves, Tezos, PIVX, etc.

Legal tokens include Bitcoin, Bitcoin Cash, Litecoin, and Monero.


Only tokens which were issued with proof-of-work are going to remain legal for use. So Ethereum would be another one to avoid.

And as the blog explains, coins which were issued with instamines and stealth mines are also investment securities and thus will be illegal to trade and spend. Therefor, Dash, Steem and Bytecoin should be avoided.

Continuing to use ICO-issued coins could create a situation where you as a user pay huge fines and potentially jail time.

(Note the market can remain irrational, so that is not a prediction about which will experience dead-cat bounce rebounds).


Incorrect. Singapore is planning to crackdown also.


Chinese don’t speculate on illegitimate things. They speculated on ICOs because they could pitch a greater fool message that these were something that would be the future. How can they have that sales pitch when most of the major nations will eventually be making ICOs illegal?

China, Russia, Singapore, and South Korea have already made announcements. The SEC also warned and will likely make enforcement announcement soon, which will cause another massive crash to lower levels.

Speculators still haven’t digested that this affects all the ICO-issued tokens, not just the China affiliated ones.

More and more crashing to come for ICO-issued tokens. (May get a dead-cat bounce which would be a good time to sell)

The other nations’ security regulators are not going to stand by and do nothing and let their citizens be subjected to scams, while the Asian countries protect their citizens. That would be very embarrassing to Western nations and abrogation of their responsibility and duty. There is already a contagion of a critical mass of nations now. This is unstoppable and ICOs are dead.


Existing ICO-issued tokens will become illegal, because investment securities are illegal to exchange if not on a registered exchange. And illegally issued investment securities are never legal to trade.

Thus ICO-issued tokens can not be spent decentralized. They are useless because can’t function as a cryptocurrency. At least not legally.


Click here for a longer explanation of why proof-of-work mined tokens are not investment securities and thus not afflicted by recent events.

that they are ico issued can't be only reason for most cryptocurrencies to collapse but I agree with that article there are many warnings around about ICOs but most people don't care about them they will lose their all money.

I disagree with that.
Surely there are some coins who can go along even after the iCO.
It is just funds for the service that they will make. More of like a donation but instead they created a coin so investors will get back what they invested and maybe more if successful.

I read his analysis and I don't really care. He is talking all about US laws which aren't global. In my country bitcoin or other crypto aren't even recognized. They are in grey area.

If people would have been smart we wouldnt have been at this juncture with lot of shit ICO's and tokens. People are stupid enough to invest in any other shitcoin out there waiting to launch project so that their dream of becoming millionaire be true! Nobody give a shit to project or product or anything, its all about MONEY.

I think the ecosystem itself with fizzle out the bad ICOs over time. People are gonna get smarter with their money and stop throwing millions at something with a lousy whitepaper and not even a product or roadmap to show for it.

It was relate to the asset, But i can say not for the real thing like POW token. The latest news from sec already told us investors to stay away from the ico, but remember it's about money and SEC don't want the more money will be flying to the cryptocurrency. It's obviously true.

That is why the community has to work together to help the coin stay alive after the ico is finished.

Yes I agree Icos without a product or a team should just be banned! Look at the pillar project. The Ceo just keep on talking and talking and does nothing! He said that he doesn’t care about the price of his tokens and people can dump, so they did... The worst marketing ever!! I will never trust an ico that has no product and decent team.

there are still other problems with ICOs. they just promise something and i think that many of the so called devs that start an ICO don't have the knowledge to reach the promised goal. and these people don't care about SEC or other authorities. they just want the money.

thats the main reason whs most of the ICO-coins are doomed.

I Think they hit the internet too quick with their first announcement, even though they call it a pre-announcement, sometimes. It takes a lot more than a half-formed idea to make a business plan, and beyond that it takes a lot more than a business plan to make a successful business. I think a lot of people come sites like this forum, have a nice idea, put it out there but they don't actually have planned or the resources to make this happen.

I don't think that has much to do with it. They've actually only made themselves Treadway popular in the past year-and-a-half. There have been brand new coins and brand new projects in cryptocurrency released since 2011. I think it's the same basic criteria that gets both of those.

I have not read this blog as yet (im out training) but I consider all ico's highly dangerous (perhaps for an entirely different reason from the OP)

Even widely advertised open ended ones.

Narrow initial distribution leads to collusion and market making. Once the whales exit (usually the devs and insiders) there is more in it for them to start a new project than continue with the old one.  The ever inflating prices you may see for periods are those whales buying and selling to each other sucking noobs in through fomo. It can take months or years for them to unload their bags but once they do..... good bye old ...hello new ico.


Very Old ico's that are stable and working through their road maps at steady rate with lowish caps are perhaps worth a look. But I would do a lot of research personally for going in hard.

You're lying or don't comprehend.
Your argument was already refuted in the blog you were reading (if you even read it?).

Dash was sneaky or instamined thus constituting the economic reality of a pre-mine to the insiders.
Thus all the logic that was explained about why Steem is equivalent to (an obfuscation of) "ICO-issued" applies also to Dash.

Make sure you read the explanation of the how the Howey Test was specifically crafted by the Supreme Court to make obfuscations of the economic reality irrelevant to the classification of an investment security.

I hate to burst your bubble but Dash is not an ICO-issued cryptocurrency. It is a proof of work cryptocurrency, that has been around since 2014.
Any attempt to put Dash under the ICO-issued label, is a doomed attempt at trolling.