ICO News

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. 

A U.S. federal judge ruled to dismiss a case against crypto firm Bancor, citing lack of personal jurisdiction and the plaintiff’s failure to prove losses.
US judge dismisses crypto fraud case against BNT token issuer
Helen Partz
What started with the unexpected closure of an investment platform may have ramifications for U.S. DeFi projects say critics.
DeFi Money Market closure after SEC probe could set rocky precedent
Cyrus McNally
A cunning trader exploited Balancer’s LBP contracts to front-run HydraDX’s token offering for $50,000 before it officially launched.
Opportunistic trader front-runs HydraDX’s Balancer LBP contract for $50,000
Samuel Haig
The SEC has charged three individuals for defrauding investors out of millions through the Steven Seagal-backed Bitcoiin2Gen ICO.
SEC charges promoters of Steven Seagal-spruiked ICO from 2018
Samuel Haig
Follow up
Gensler will likely be replacing Jay Clayton, who famously slowed down the ICO market during his tenure at the SEC. Will Gensler issue new clarity?
The way forward for ICOs: Learn crypto from Biden's SEC chair pick, part 1/3
Kollen Post
The celebrity was commissioned to record a promotional video for cryptocurrency in which she forecast new all-time price highs for Bitcoin and Ether.
‘Drive your lambos to the moon,’ says Lindsay Lohan in crypto promotion video
Marie Huillet
The defunct firm is not the first to run aground due to failure to abide by U.S. securities laws.
SEC scuppers ShipChain's $27M ICO and fines the firm its last $2M
Kollen Post
The crypto industry is ending 2020 on a high note, while major social media platforms face a phalanx of lawmakers and lawsuits.
Law Decoded: Crypto on the rise, Big Tech on notice, Dec. 11–18
Kollen Post

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