Instead of a safe harbor for crypto firms, SEC Commissioner Caroline Crenshaw called for a “bridge” in which crypto firms work with the SEC to determine compliance plans.
An initial coin offering, or ICO, is a controversial fundraising method for launching blockchain and cryptocurrency networks that involves the sale and distribution of a new crypto asset in exchange for other tokens, commonly Bitcoin (BTC) and Ether (ETH).
During the “ICO mania” of 2017 to 2018, projects collectively raised billions of dollars in capital, largely through nonaccredited investors.
This funding method has since lost most of its legitimacy, both inside and outside the industry. Many ICOs were clearly frauds or, at best, operating in regulatory gray areas. Over the past few years, regulatory agencies such as the United States Securities and Exchange Commission,or SEC, have brought legal action to past and present ICOs, slowly creating legal precedent and guidelines for future ventures.
While the ICO is now a precarious fundraising method for projects and investors alike, it did showcase a powerful use case of blockchain in permissionless fundraising at incredible scale. Over time, the launch methods of cryptocurrency networks will become more sophisticated, safe and, perhaps, regulatorily sound.
The billionaire investor conveyed his predominantly bullish opinions on the crypto ecosystem during a recent online interview8472
A blockchain-based project plans to build renewable power projects with funds raised from the ICO.5596
The firm uses the Ethereum blockchain to allow traders to invest as little as $150 in expensive real estate properties.12120
The SEC has taken action against three companies owned by Chinese billionaire Guo Wengui for commingling the proceeds from two unregistered securities offerings.9109
A cryptocurrency exchange focused on frictionless transactions is positioning itself as the bridge between fiat and digital currencies across the globe.4273
New research asserts that EOS and ETH were wash-traded on exchanges to manipulate prices during EOS’ multi-billion-dollar ICO.14064
The industry body has accused the government of leaning into narratives about malicious actors and scams rather than engaging with the blockchain space to establish fit-for-purpose regulation.3562
Eleven class actions against crypto firms and their founders started with a bang and will end with a whimper — as they should.3981
The SEC asserts that Coinschedule violated anti-touting provisions of U.S. securities laws.1365
The Game is facing a $12 million judgment for his role in an allegedly unregistered initial coin offering.6080
U.S. securities regulators are still going after ICO cheats from the 2017-18 bull market. Initial coin offerings raised tens of billions of dollars during the last major cryptocurrency bull market.8188
Coinseed also created an ERC-20 token whose message is targeted at New York Attorney General Letitia James.7460
An initial public offering is the classic way to take a company public, but many crypto companies bypass the regulatory scrutiny with a backdoor SPAC merger.8365
Initial DEX offerings have a fair bit in common with initial coin offerings but come out on top in cost, effort, and fairness.14883