Bitcoin Forum
April 25, 2018, 12:52:45 AM *
News: Latest stable version of Bitcoin Core: 0.16.0  [Torrent]. (New!)
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: [2017-06-20]Too Easy? Critics Take Aim at Ethereum Token Standard Amid ICO Boom  (Read 3540 times)
Siren
Sr. Member
****
Offline Offline

Activity: 378
Merit: 250


View Profile
June 20, 2017, 07:51:29 PM
 #1

Too Easy? Critics Take Aim at Ethereum Token Standard Amid ICO Boom

It's hard not to be taken aback by the amount of money consumers have been throwing at initial coin offerings (ICOs) lately.

The new fundraising model allows developers to sell digital 'tokens' to raise money for decentralized projects. Two recent events highlight why there may be cause for concern.

Earlier this month, web browser startup Brave made $35m in seconds selling its basic attention token (BAT). And, soon after, a relative unknown called Bancor pulled in $150m in hours – the largest ICO in history – despite claims about possibly sketchy code underlying the project.

Like the majority of recent ICOs, these projects were built on the ethereum blockchain. And what they have in common is ERC-20 – a standard that allows wallets, exchanges and other smart contracts to interface with a variety of tokens in a common way.

Yet, while standards exist for good reason, when combined with a lack of regulation in the space, some believe ERC-20 may be making it too easy for unscrupulous projects to get into the game.

http://www.coindesk.com/too-easy-critics-take-aim-at-ethereum-token-standard-amid-ico-boom/
1524617565
Hero Member
*
Offline Offline

Posts: 1524617565

View Profile Personal Message (Offline)

Ignore
1524617565
Reply with quote  #2

1524617565
Report to moderator
1524617565
Hero Member
*
Offline Offline

Posts: 1524617565

View Profile Personal Message (Offline)

Ignore
1524617565
Reply with quote  #2

1524617565
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1524617565
Hero Member
*
Offline Offline

Posts: 1524617565

View Profile Personal Message (Offline)

Ignore
1524617565
Reply with quote  #2

1524617565
Report to moderator
1524617565
Hero Member
*
Offline Offline

Posts: 1524617565

View Profile Personal Message (Offline)

Ignore
1524617565
Reply with quote  #2

1524617565
Report to moderator
TraderTimm
Legendary
*
Offline Offline

Activity: 2156
Merit: 1011



View Profile
June 21, 2017, 03:08:02 PM
 #2

Just wait until the Securities and Exchange Commission starts sniffing around.

You see, a lot of these offerings didn't discriminate - they were openly offered to U.S. Citizens which violates securities laws for operating what is essentially an offering of an unlicensed security. Similar enough, that is, to make the SEC try to rule on jurisdiction and potential damages to the organizations issuing these contracts.

And before you say the SEC doesn't have the reach -- recall that they even caught up with ex-pat Erik Voorhees when he did a similar style token offering for a business he was running.

It will take some time, as they are rather ponderous when gathering information, but once that stone gets rolling I'd be sure I wasn't sitting under the wall of rock coming your way.

fortitudinem multis - catenum regit omnia
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!