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 can I invest in ICO?
How To Buy ICO Tokens in Four Steps
Read moreIs it profitable to invest in ICO?
While they can be highly profitable for both companies and investors , there is a large amount of risk involved due to their unregulated nature. Despite the vast majority of ICOs being scams, many individual investors still participate.
Read moreWhat is an IDO in cryptocurrency?
An IDO is a crypto token offering run on a Decentralized Exchange (DEX) . Liquidity pools (LP) play an essential role in IDO’s by creating liquidity post-sale. A typical IDO lets users lock funds in exchange for new tokens during the token generation event.
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