Topic: RIP ICO (Read 91 times)

The money-generating machines of the financial world crypto in 2017 are in trouble in early 2018, and it could get worse for the upcoming ICO. But that is not the worst thing for the industry. According to Aaron Wright, an associate professor at the Cardozo School of Law in Brooklyn and president of the Enterprise Ethereum Alliance Legal Working Group, "I think that's going to be a positive one," Wright explains. "I think there are a number of projects that do not seem to be a legitimate project and hope that one or more tough coercive actions will stop that activity and put them out of the market. It can eliminate fraud and allow the ecosystem to grow healthy. "On February 28, the Wall Street Journal reported that the US Securities and Exchange Commission The "dozen" subpoena for information from people and companies working token providers, ICO in the crypto space. Paul Vigna and Jean Eaglesham of the WSJ wrote, "Extensive exploration has increased the pressure on the US billion dollar market to raise capital in crypto. It follows a series of warnings from the leading US securities regulator that many token sales, or ICOs, may violate securities laws. "The question is whether ICOs are usually built on law. stock. For a long time, people in blockchain space have said that it is not. An ICO is a common name for the process by which blockchain startups sell their tokens. Young companies raised capital from ICO, the largest corporations, such as FileCoin, have raised $ 262 million, Tezos has raised $ 232 million, and Kik, earned $ 98 million. How does it work? As a hypothetical example, if a company, called it Woods Inc, is building an app where users can buy and sell smart blog posts on the blockchain, it can issue poisonous tokens. Imagine being able to trade the post, calling it Woodscoin. If this idea works well, more and more people will want to buy and sell these great articles, and so WoodsCoin's price will increase as demand grows and supply constraints force people to spend more. Consume more to get good content. Those who buy WoodsCoin when they debut will be able to sell them to more people. That is the logic of an ICO, or more or less. It's really not like investing in a company where investors get shares in the company in exchange for their money, and many say it's not covered by the stock. But others do not agree. Linking legal action "The law is quite clear that if you buy something from someone else with the intention of making a profit then what you are buying is confidential. It's a huge mess if you really know the law, "Wright said on the phone last week. According to the industry's leading news source, Coindesk, nearly $ 9 billion has been raised through the ICO. And that's one thing that exists at virtually any scale from about May 2017. However, so far, only a few regulations on government sales, although the SEC has repeatedly warned in writing. The agency closed the ICO of a company called Munchee in December. Munchee is clearly describing that its tokens are a promising method of speculation and forced to pay all $ 15 million for Investors. Also in December, it frozen the assets of a company called PlexCoin, promising that investment in PlexCon would yield 1.354% within 29 days. "And in January, it stopped working. AriseBank, the world's first scattered bank. "The Dallas-based company was accused of cheating investors, saying it had bought a real bank for compliance with the FDIC. With this new subpoena, will more action be taken? And what will it look like? "If the reports are accurate, I would imagine that would be a sweeping or coercive act. I think that one thing that is underestimated is only the first SEC action. That will set the precedent for civil legal action from the claimant's attorney, "Wright said. The SEC subpoena is not just for fundraising companies but also for some lawyers involved in sales and even some big investors. "Regulatory friction," said Jake Brukhman, managing partner of Brooklyn's CoinFund investment fund, "In general, on the global level, I think the ICO continues to exist. I think some countries come up with solutions. The United States in particular and we generally need more law and especially in the securities sector, and especially in the securities sector in the US ICO market has become cautious. "Brukman said he saw the The company recently engaged in only token sales activities with certified investors and filed a Ds form with the SEC,