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I'm confused; if you can't use ICO proceeds to fund operations, then what can you spend them on? Where is the money supposed to go?
by nugget 9y ago
I'm confused; if you can't use ICO proceeds to fund operations, then what can you spend them on? Where is the money supposed to go?
- mc42 9y agoI believe this is part of their announcement on how the SEC will be handling ICOs, but IANAL. https://news.ycombinator.com/item?id=15902054 https://news.ycombinator.com/item?id=15902054
- CPLX 9y agoThe money for funding operations is supposed to flow through a registered or otherwise legal security instrument, which this ICO was not. The law hasn't changed, just the supposedly innovative ways of pretending the law doesn't exist.
- PeterisP 9y agoThe money can (and probably should) go to fund operations, however, you're supposed to register such ICOs with the SEC and follow the proper process just as any other release of securities to investors.
- csomar 9y agoNope. You can use the ICO like the IPO. You just need to follow the regulation required. Obviously, they opted for an ICO to avoid that.