The ICO boomed in the 2017-2018 biennium, but what is it?
An "Initial Coin Offering" is a type of cryptocurrency financing. In an ICO, cryptocurrencies are sold in the form of tokens to speculators or investors in exchange for traditional money or crypto such as BTC or ETH. 🧵
ICOs are high-risk investments; a 2018 report by Satis Research Group examined about 1,500 ICOs: 78 percent of the projects were identified as scams, valued at a total of 1.3 billion.
Here you will find 13 ICO scams that have fooled thousands of people:
Not everything turned out to be a scam, but don't ask bitcoin maximalists 😂, In fact Ethereum's ICO occurred in 2014.
At that time the bid was 1 BTC (400usd) for 2,000 ETH, nearly 60 million coins were sold, for a total of 31,529 BTC!
FUN FACT: No ICO for Bitcoin
Ethereum and its open source smart contract platform were key players in the ICO boom of 2017, anyone can create a token and manage its distribution. Many of these projects that have contributed to the growth of the Ethereum network have raised funds just like that.
The huge amount of funds raised attracted the attention of the SEC. In fact, some projects were issuing securities with ICOs: in a nutshell, the tokens sold had no utility but represented actual shares in the companies.
Regulation in the crypto market is still unclear due to its decentralized and accessible nature without intermediaries, however, in recent years we can say that the adoption trend is growing and regulation to support technological innovation is what we all expect!✨This post is based on this twitter thread.