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There are so many articles about ICOs that don't offer any new thinking. This one covers: 1. Lots of ICOs happening (crossed $3B in money raised). 2. ICOs are
by a_d 9y ago
There are so many articles about ICOs that don't offer any new thinking. This one covers:
1. Lots of ICOs happening (crossed $3B in money raised).
2. ICOs are risky.
3. SEC will likely use the Howey test to determine which ones are securities (and therefore need to comply with securities law)
4. Startups may be able to protect themselves by limiting token sales to accredited investors and providing more disclosures in their white papers. (a hack that most people now are well aware of -- i.e. the utility token + SAFT route)
5. When you invest in an ICO, you not just take financial risk, but also may inadvertently be breaking a law (basically, ICOs are fraught with uncertainty)
I wish we heard something new. Clearly, there is something interesting happening - a new way to raise money, or perhaps a new way to launch products. In the long run, it is exciting because it will help launch useful products and services. But many articles often just regurgitate what most people already know, and don't offer anything new.
I suppose regulatory authorities at some point will offer a way forward (by regulating this space -- which I think would be a good thing!). Until that happens, we just hear a lot of armchair thinkers and potential practitioners just conjecture endlessly.
- blfr 9y agoI understand that people offering the tokens ("promoters") may be breaking the securities law, I can somewhat understand that exchanges listing them may be breaking the law, but under what conditions can buyers/investors be breaking the law?
- vasilipupkin 9y agoyou break the law if you sell the token. So, suppose you buy it on an exchange and then sell it to a non-accredited investor. if the token is a security, you selling it is breaking the law, even if you are not the issuer.
- vasilipupkin 9y agoMy view is, in the future, startups will lean towards airdropping tokens for free, once the initial wave of raising money pre-product subsides.
- tomkarlo 9y agoBloomberg is targeting this at their reader base (general investors), who may or may not be up to speed on the latest ICO discussion, or aware of any of these issues. News reports targeted at the broader market are always going to seem obvious/repetitive if you're already active in a sector.
- ultimatejman 9y agoI agree with both of you. Yes, it covers what most people in the space already know, but these things must be reiterated to the public. For every ICO hype article, a piece like this should exist.