Entrepreneurs looking to launch a new cryptocurrency can do it through an initial coin offering (ICO), a variation on an initial public offering (IPO). There is little to no government regulation of ICOs currently , and anyone can launch one, provided they get the technology put in place.
Read moreAre initial coin offerings legal in the US?
The US Securities and Exchange Commission recently ruled that ICOs, but not crowdselling, will be treated as the sale of a security . This basically means that all ICOs must be registered like IPOs and offered only to accredited investors.
Read moreAre ICOs illegal?
ICOs are, for the most part, completely unregulated , so investors must exercise a high degree of caution and diligence when researching and investing in ICOs.
Read moreWhich country has banned initial coin offerings?
On September 4, 2017 seven Chinese financial regulators officially banned all ICOs within the People’s Republic of China , demanding that the proceeds from all past ICOs be refunded to investors or face being “severely punished according to the law”.
Read moreHow Companies Use initial coin offerings?
What are Initial Coin Offerings? ICOs are another form of cryptocurrency that businesses use in order to raise capital . Through ICO trading platforms, investors receive unique cryptocurrency “tokens” in exchange for their monetary investment in the business.
Read moreWhat determines initial coin offering success a cross country study?
The results show that while insider retention and resource-related signals, such as the number of team members and advisors , contribute positively to the ICO’s funding success and post-ICO activity, presale offers and bonuses contributed negatively.
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