Initial coin offerings have only recently come into the light as a major source of capital for unfunded projects. According to stats, a staggering $5.5 billion was raised for projects in 2017 with nearly 300 projects announced. In 2018 to date, the number of listed ICOs has decreased to just over 200 but provided $6.3 billion of funding. With almost an entire quarter to go, funding amounts towards active projects are expected to double by the end of this year. According to reports, ICOs raised $4.6 billion in the first quarter of 2018, or 85% of all funds in 2017.
The Big ICO Problem
Not surprisingly, a large sum of these projects turned out to be completely fake and resulted in the theft of an estimated $2 billion in 2017. This phenomenon, coupled with cryptocurrency exchanges getting hacked in increments of millions of dollars was thought to dampen the sentiment in thousands of funding projects.
Popularity around the idea of international currencies drew attention from just about every government in the world. The fact that people were still willing to invest thousands of dollars in the absence of regulation cannot continue to go unchecked as the frequency of scams will only increase.
In fact, the United States Security and Exchang...
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