Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”?

[Traxo]

Is he correct in his analysis?

[Faroxx]

Advertising..... All cryptocurrency released by the ICO is very easy to "make friends" with the law - you just need to make a legitimate Ethereum, waves and other major platforms to forks.

[newfulluser]

Is he correct in his analysis?

Crypto could be illegalized everywhere and we would still be able to use it, they could have stopped it in 2009 but now it's too late. No matter what we will be able to use and trade crypto.

I would not worry about this.

[Traxo]

Crypto could be illegalized everywhere and we would still be able to use it, they could have stopped it in 2009 but now it's too late. No matter what we will be able to use and trade crypto.

I would not worry about this.

You apparently haven't read the linked blog.

Cryptocurrencies issued such that they aren't investment securities (such as issued with non-sneaky, fully competitive proof-of-work) are exempt from SEC and FinCEN regulations.
All "ICO-issued" (and that includes obfuscating sneaky mine/burn scams such as Dash, Bytecoin, Byteball, etc) tokens will not function as cryptocurrencies for the reasons stated in the blog.

If you're going to attempt to refute the blog, then please actually refute the points in the blog.

[newfulluser]

Crypto could be illegalized everywhere and we would still be able to use it, they could have stopped it in 2009 but now it's too late. No matter what we will be able to use and trade crypto.

I would not worry about this.

You apparently haven't read the linked blog.

Cryptocurrencies issued such that they aren't investment securities (such as issued with non-sneaky, fully competitive proof-of-work) are exempt from SEC and FinCEN regulations.
All "ICO-issued" (and that includes obfuscating sneaky mine/burn scams such as Dash, Bytecoin, Byteball, etc) tokens will not function as cryptocurrencies for the reasons stated in the blog.

If you're going to attempt to refute the blog, then please actually refute the points in the blog.


I read the blog, who cares if they aren't investment securities? And there are coins that will still be legal because they didn't have an ico

[qwizzie]

Crypto could be illegalized everywhere and we would still be able to use it, they could have stopped it in 2009 but now it's too late. No matter what we will be able to use and trade crypto.

I would not worry about this.

You apparently haven't read the linked blog.

Cryptocurrencies issued such that they aren't investment securities (such as issued with non-sneaky, fully competitive proof-of-work) are exempt from SEC and FinCEN regulations.
All "ICO-issued" (and that includes obfuscating sneaky mine/burn scams such as Dash, Bytecoin, Byteball, etc) tokens will not function as cryptocurrencies for the reasons stated in the blog.

If you're going to attempt to refute the blog, then please actually refute the points in the blog.


I read the blog, who cares if they aren't investment securities? And there are coins that will still be legal because they didn't have an ico

I hate to burst your bubble but Dash is not an ICO-issued cryptocurrency. It is a proof of work cryptocurrency, that has been around since 2014.
Any attempt to put Dash under the ICO-issued label, is a doomed attempt at trolling.   

[Traxo]

I hate to burst your bubble but Dash is not an ICO-issued cryptocurrency. It is a proof of work cryptocurrency, that has been around since 2014.
Any attempt to put Dash under the ICO-issued label, is a doomed attempt at trolling.

You're lying or don't comprehend.
Your argument was already refuted in the blog you were reading (if you even read it?).

Dash was sneaky or instamined thus constituting the economic reality of a pre-mine to the insiders.
Thus all the logic that was explained about why Steem is equivalent to (an obfuscation of) "ICO-issued" applies also to Dash.

Make sure you read the explanation of the how the Howey Test was specifically crafted by the Supreme Court to make obfuscations of the economic reality irrelevant to the classification of an investment security.

[cryptohunter]

I have not read this blog as yet (im out training) but I consider all ico's highly dangerous (perhaps for an entirely different reason from the OP)

Even widely advertised open ended ones.

Narrow initial distribution leads to collusion and market making. Once the whales exit (usually the devs and insiders) there is more in it for them to start a new project than continue with the old one.  The ever inflating prices you may see for periods are those whales buying and selling to each other sucking noobs in through fomo. It can take months or years for them to unload their bags but once they do..... good bye old ...hello new ico.


Very Old ico's that are stable and working through their road maps at steady rate with lowish caps are perhaps worth a look. But I would do a lot of research personally for going in hard.

[JohnBitCo]

Is he correct in his analysis?

He's not 100% right that a coin will fail if it's based off of through an ico. There's a bunch of coins that already made at least 50 times their value and they began with an ico.

I think that all it takes if for a single coin to launch without an ico to get up the rankings and double the money that they have at least a hundred times or so then more coins will begin to launch coins without an ico with the same amount of hopes that it will have as much success as the previous one had.

I don't think that has much to do with it. They've actually only made themselves Treadway popular in the past year-and-a-half. There have been brand new coins and brand new projects in cryptocurrency released since 2011. I think it's the same basic criteria that gets both of those.

[posternat]

I Think they hit the internet too quick with their first announcement, even though they call it a pre-announcement, sometimes. It takes a lot more than a half-formed idea to make a business plan, and beyond that it takes a lot more than a business plan to make a successful business. I think a lot of people come sites like this forum, have a nice idea, put it out there but they don't actually have planned or the resources to make this happen.

[vlom]

there are still other problems with ICOs. they just promise something and i think that many of the so called devs that start an ICO don't have the knowledge to reach the promised goal. and these people don't care about SEC or other authorities. they just want the money.

thats the main reason whs most of the ICO-coins are doomed.

[CrypticGambit]

there are still other problems with ICOs. they just promise something and i think that many of the so called devs that start an ICO don't have the knowledge to reach the promised goal. and these people don't care about SEC or other authorities. they just want the money.

thats the main reason whs most of the ICO-coins are doomed.

Yes I agree Icos without a product or a team should just be banned! Look at the pillar project. The Ceo just keep on talking and talking and does nothing! He said that he doesn’t care about the price of his tokens and people can dump, so they did... The worst marketing ever!! I will never trust an ico that has no product and decent team.

[Bostonias]

there are still other problems with ICOs. they just promise something and i think that many of the so called devs that start an ICO don't have the knowledge to reach the promised goal. and these people don't care about SEC or other authorities. they just want the money.

thats the main reason whs most of the ICO-coins are doomed.

That is why the community has to work together to help the coin stay alive after the ico is finished.

[CuriousGeorge]

Is he correct in his analysis?

It was relate to the asset, But i can say not for the real thing like POW token. The latest news from sec already told us investors to stay away from the ico, but remember it's about money and SEC don't want the more money will be flying to the cryptocurrency. It's obviously true.

[Beicin]

I think the ecosystem itself with fizzle out the bad ICOs over time. People are gonna get smarter with their money and stop throwing millions at something with a lousy whitepaper and not even a product or roadmap to show for it.

[shade_wrath]

I think the ecosystem itself with fizzle out the bad ICOs over time. People are gonna get smarter with their money and stop throwing millions at something with a lousy whitepaper and not even a product or roadmap to show for it.

If people would have been smart we wouldnt have been at this juncture with lot of shit ICO's and tokens. People are stupid enough to invest in any other shitcoin out there waiting to launch project so that their dream of becoming millionaire be true! Nobody give a shit to project or product or anything, its all about MONEY.

[sweerty1]

I read his analysis and I don't really care. He is talking all about US laws which aren't global. In my country bitcoin or other crypto aren't even recognized. They are in grey area.

[Dart18]

I disagree with that.
Surely there are some coins who can go along even after the iCO.
It is just funds for the service that they will make. More of like a donation but instead they created a coin so investors will get back what they invested and maybe more if successful.

[gedor]

that they are ico issued can't be only reason for most cryptocurrencies to collapse but I agree with that article there are many warnings around about ICOs but most people don't care about them they will lose their all money.

[Hyperme.sh]

Is he correct in his analysis?

Well he predicted this 2 days before it happened.

And specifically warned at the top of his blog that NEO was vulnerable.

Winner will be the country that makes icos legal and regulated.

All countries are being forced to enforce securities regulation same as was the case for FATCA. All this information is covered in detail at the following blog:

Are Most Cryptocurrencies Doomed to Collapse — because they’re “ICO-issued”?

I think banning of ICO means ban to start an ICO, not ban to invest in ICO.

Incorrect. Read the linked blog to learn about investment securities and more details. Follows is a summary.

There will be a banning of trading on the exchanges for the tokens which were issued by ICO (or any obfuscation of an ICO which is equivalent).

Tokens will be frozen on exchanges. Money will be recovered from issuers and some will be jailed. Some who promoted and/or traded large quantities of ICO-issued tokens will be fined and possibly jailed.

Use of ICO-issued tokens will be illegal because it is illegal to trade investment securities on an unregulated exchange.

So that means avoid IOTA, NEO, Qtum, EOS, ETH, Stratis, Decreed, NEM, List, Waves, Tezos, PIVX, etc.

Legal tokens include Bitcoin, Bitcoin Cash, Litecoin, and Monero.

Guess Quality coins should rebounce within 2 weeks

Only tokens which were issued with proof-of-work are going to remain legal for use. So Ethereum would be another one to avoid.

And as the blog explains, coins which were issued with instamines and stealth mines are also investment securities and thus will be illegal to trade and spend. Therefor, Dash, Steem and Bytecoin should be avoided.

Continuing to use ICO-issued coins could create a situation where you as a user pay huge fines and potentially jail time.

(Note the market can remain irrational, so that is not a prediction about which will experience dead-cat bounce rebounds).

I think Singapore could be the one.

Incorrect. Singapore is planning to crackdown also.

this event is a small bump on the road, Chinese investors will always finds a way to invest in ICO's, but for ICO operator they need to migrate to other country to continue with their operations.

Chinese don’t speculate on illegitimate things. They speculated on ICOs because they could pitch a greater fool message that these were something that would be the future. How can they have that sales pitch when most of the major nations will eventually be making ICOs illegal?

China, Russia, Singapore, and South Korea have already made announcements. The SEC also warned and will likely make enforcement announcement soon, which will cause another massive crash to lower levels.

Speculators still haven’t digested that this affects all the ICO-issued tokens, not just the China affiliated ones.

More and more crashing to come for ICO-issued tokens. (May get a dead-cat bounce which would be a good time to sell)

The other nations’ security regulators are not going to stand by and do nothing and let their citizens be subjected to scams, while the Asian countries protect their citizens. That would be very embarrassing to Western nations and abrogation of their responsibility and duty. There is already a contagion of a critical mass of nations now. This is unstoppable and ICOs are dead.

can be banning existing ICO

Existing ICO-issued tokens will become illegal, because investment securities are illegal to exchange if not on a registered exchange. And illegally issued investment securities are never legal to trade.

Thus ICO-issued tokens can not be spent decentralized. They are useless because can’t function as a cryptocurrency. At least not legally.


Click here for a longer explanation of why proof-of-work mined tokens are not investment securities and thus not afflicted by recent events.