After cryptocurrencies exploded in 2017, the same amount of attention was given to Initial Coin Offerings (ICOs). It was not long before the US SEC took an interest in the phenomenon, although they were not looking at it lightly. In fact, many would argue that the regulator's response was quite harsh, not only regarding ICOs but the entire crypto market, as they basically said that most altcoins are securities.
While ICOs went big in 2017, they originally appeared four years earlier, in 2013. Since then, numerous coins that are on the top of the crypto list have been launched, including the likes of Stellar (XLM), and even Ethereum (ETH). Then came 2017, and the growth in Bitcoin's price affected the entire market, which surged to entirely new heights. Countless startups realized that holding an ICO might be a way for them to quickly get funding for their projects, and they started emerging all over the world.
However, the trend also attracted criminals who realized that it would be easy to scam new investors out of their money, and within months, the ICO trend started losing the investors' trust. The market crash in early 2018 took down the prices of most coins, and all of a sudden, no one was willing to invest in just about any project that emerges anymore.
Back in mid-2017, the SEC decided to investigate the DAO project, and after the investigation was complete, the regulator was not satisfied with their findings. They issued a warning to ICO issuers and investors alike, pointing out that securities laws may be applied to some of the ICOs. According to their report, all tokens that promised large returns are to be considered securities, instead of utilities, as the startups tended to announce them as.
The SEC's involvement was seen as a good thing at the time, as many believed that the regulator might clear the space of scammers. However, a lot of investors still wanted to invest in these so-called securities, as that was the only way for them to get rich quick. When this didn't happen, they went back to the SEC with complaints, and the SEC took action.
The regulator's Chair Jay Clayton announced that basically every altcoin out there was a security, with Ethereum being the only recognized exception apart from Bitcoin itself.
Now, the Canadian messaging firm, Kik, has something to say about the situation, particularly when it comes to their own token, Kin.
When Kin first appeared, it appeared like there were no problems with the SEC, and it all ended after a few simple questions. Over time, however, the SEC became more harsh towards cryptocurrencies, and they eventually issued a Wells notice, stating that they believe that the token might belong in the securities category.
Kik defended the project, stating that the coin was announced as a currency and that it is being used as one, meaning that it cannot be a security. While the internet mocked this, some of the Kik's points remain, and even if their coin's price grew in late 2017 (pretty much no coin managed to avoid that), that does not make it a security.
The future of ICOs may not even be worth discussing for some investors and analysts, as there are many out there who believe ICOs to be dead. However, this may not be the case, and there is also a strong belief that the ICO model simply lost popularity and trust, but that it is still around.
Meanwhile, a new trend is taking off, which is openly admitting that tokens are securities, and selling them as such in STOs. Some even view STOs as spiritual successors to ICOs, and potentially the next step in token sales. In a way, that would mean that ICOs are not dead, but that they evolved into STOs.
While there are still some examples of ICOs that can be found today, there are a lot more security token offerings around than initial coin offerings. As for the future, the ICO model might perish after a while, if the STO trend takes off as it appears to be doing. Since it is a valid and regulatory-friendly alternative, it is unlikely that a lot of companies will attempt to pass their security on as a utility in the future, meaning that the real utilities might be the only coins that will ever be sold in ICOs.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||64%||82||$63 645.44||-1.99%||7.33%||$1 199 774 552 258|
|2||ETH||Ethereum predictions||68.8%||59||$4 139.22||-1.75%||9.78%||$488 553 235 728|
|3||BNB||Binance Coin predictions||65.6%||64||$494.18||2.27%||7.35%||$82 429 849 478|
|4||ADA||Cardano predictions||90%||12||$2.19||-2.26%||1.61%||$72 047 004 298|
|5||USDT||Tether predictions||94.8%||1||$1.000114||0.05%||-0.02%||$69 621 041 076|
|6||SOL||Solana predictions||71.2%||53||$208.99||12.31%||31.86%||$62 869 603 263|
|7||XRP||XRP predictions||76.4%||50||$1.11||-2.14%||-0.86%||$51 997 973 203|
|8||DOT||Polkadot predictions||60.8%||76||$45.63||4.21%||15.04%||$45 063 591 577|
|9||DOGE||Dogecoin predictions||72%||57||$0.246272||-2.25%||8.04%||$32 458 768 640|
|10||USDC||USD Coin predictions||94%||1||$1.000179||0.05%||0%||$32 371 720 899|
|11||LUNA||Terra predictions||68%||63||$44.81||8.47%||21.75%||$17 994 078 265|
|12||UNI||UniSwap predictions||74.8%||55||$26.75||-0.32%||4.19%||$16 363 172 636|
|13||AVAX||Avalanche predictions||68%||64||$65.76||6.17%||19.69%||$14 486 666 348|
|14||WBTC||Wrapped Bitcoin predictions||61.2%||82||$63 639.39||-2.08%||7.19%||$14 070 224 774|
|15||LTC||Litecoin predictions||69.6%||56||$199.17||-2.89%||10.96%||$13 703 410 012|
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2021 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.