Should ICOs be regulated as IPOs?

[ludovicvuillier]

ICOs should definitely NOT be regulated.
The massive fluctuations we see in the cryptoworld are possible only as a result of the unregulated environment ICOs and cryptocurrencies are immersed within.. regulate it and you'll get something like the stock market where the only ones who make profits are insider traders and hedge funds.
Regulators please leave our cryptos alone..

Actually, that's not the reason for the fluctuations in price. The reason behind the massive fluctuations in price is because there is no ecosystem behind it and the price is based purely on a speculative model. Nothing else. Whereas, fiat currencies, stocks, commodities have financial ecosystems behind it - be it import/ export (for currencies), a company's products/ services (for stocks) and supply/ demand and use in industry (for commodities). All of these have nothing to do with regulation. Regulation would change a few things, but definitely not that.

What I am talking about is that, assuming money is a zero-sum-game (which we, as investors, should do), in order for 100x opportunities to be there (see stratis, ethereum, monero..), there need to be several 0x scams. If the environment becomes more regulated, you definitely won't have as many 0x scams anymore that's for sure, but you can also forget about those other gems. That's how I see it - but you make a good point about the lack of an ecosystem being also what makes the price work for cryptos most often than not on a speculative model. Wouldn't say this always apply however; check coins with actual use such as monero and all those coming dexs which will use the token for their functioning (kyber eidoo etc etc etc).
My point is: if you create regulations, societies have to adhere to those in order to function, this create a steeper initial investment in order for a new token to exist and thus 'betting on the underdogs' becomes less interesting.

I half disagree with you

Regulation does not have to be costly at all. I've helped companies get regulation and it cost them less than what most ICOs invest in marketing. So if done well it does not have to be a death sentence to the underdogs. Though the "if done well" part is the one I'm worried about
That's why it's something that we're addressing in our company. Because building it up correctly is SO important.

[TastyChillySauce00]

No way. That ruins the crypto world and its decentralized nature. Yes, some ICO's scam and some steal from the investors, but that is something we have to learn to live with. The benefits of decentralization way overpower the issues. This is the line we must draw in the sand and never cross. If people fear being scammed, then simply avoid the ICO markets. It is better in the long run to keep to our values and not falter.

The main issue isn't being scammed (regulation doesn't do as much as it claims to prevent that), the problem is mostly about the legality of the funds.
There is still a way to keep things mostly decentralized and still have regulation.

Regarding the legality of the funds, KYC simply solved this, and there are also many projects that take an advice from a legal advisor to comply with the government rules. By that, I assume, there'll be no more problem regarding the legality of the funds and at the same time, could prevent money laundering.
However from my opinion, the regulation doesn't make the ICO's asset centralized, it's just regulating in such region.

The KYC asked is the minimal ass coverage required and no more, just like the legal compliance advice that they get. A bit of regulation would most definitely help. I say this from my experience in the financial industry.

As you just wrote - regulation does not make it centralized. I said that because of from your previous comment it seemed you thought regulation would make it centralized.

well, it's posternat that said such thing, I know from the start that all these cryptocurrencies' nature are decentralized and it's permanent.
Just like what you said, none of the regulations can make cryptocurrency which designed from the start to be decentralized changing.

[ludovicvuillier]

well, it's posternat that said such thing, I know from the start that all these cryptocurrencies' nature are decentralized and it's permanent.
Just like what you said, none of the regulations can make cryptocurrency which designed from the start to be decentralized changing.

Glad to see we agree.

By the way, this is the reason that our company is looking to be regulated since it won't affect the basic aspect of what the blockchain does for the crypto economics but it will offer some added protection.

[1kings]

Yes. All ICOs need some regulation. To prevent scams and protect investors. Would this guarantee their performance ? No!

[Tyr808]

I half disagree with you

Regulation does not have to be costly at all. I've helped companies get regulation and it cost them less than what most ICOs invest in marketing. So if done well it does not have to be a death sentence to the underdogs. Though the "if done well" part is the one I'm worried about
That's why it's something that we're addressing in our company. Because building it up correctly is SO important.

What I'm talking about is sets of regulations imposed by governments and banks. Once those hit the crypto world, we can forget about the super gains like Stratis and Monero. Look at the USA, now American citizens are 'protected' from having 10x gains through ICO - a good example of regulations!

[ludovicvuillier]

I half disagree with you

Regulation does not have to be costly at all. I've helped companies get regulation and it cost them less than what most ICOs invest in marketing. So if done well it does not have to be a death sentence to the underdogs. Though the "if done well" part is the one I'm worried about
That's why it's something that we're addressing in our company. Because building it up correctly is SO important.

What I'm talking about is sets of regulations imposed by governments and banks. Once those hit the crypto world, we can forget about the super gains like Stratis and Monero. Look at the USA, now American citizens are 'protected' from having 10x gains through ICO - a good example of regulations!

I am also talking about regulations imposed by governments (the only regulations banks impose are imposed on them) are not always costly, and I am saying this from experience. I advise a company that helps companies get regulated in many jurisdictions. Regulations don't HAVE to be costly nor do they HAVE to limit potential gains. The fact that some regulations do doesn't mean that it has to be this way.

So should there be regulations? Absolutely. Right now, it's too much like the wild west. But as I've said - smart ones. Not idiotic ones that do nothing to actually achieve something meaningful.

[aljazstraser]

Regulations will be everywhere. China started the wave.. Russia will continue.. but Europe has chance to become more open for it even with regulations, since USA are killing it on the other side.

I agree we should pay taxes from ICOs.. its problem if you have money and you can't withdraw it without making some illegal activity. And simple as that pay tax, withdraw and be safe

Besides crowdfunding MUST be regulated because of too many shitty projects. If we want quality we need filtering...just take a look at each day announcements.. its becomming annoying.

[Minor Miner]

I don't want but it suppose ICO would be regulated by governments around the world next year. It won't be so strict as for IPO at the beginning at least.

[Tyr808]

I am also talking about regulations imposed by governments (the only regulations banks impose are imposed on them) are not always costly, and I am saying this from experience. I advise a company that helps companies get regulated in many jurisdictions. Regulations don't HAVE to be costly nor do they HAVE to limit potential gains. The fact that some regulations do doesn't mean that it has to be this way.

So should there be regulations? Absolutely. Right now, it's too much like the wild west. But as I've said - smart ones. Not idiotic ones that do nothing to actually achieve something meaningful.

I get what you say, however in practical terms what I see around me is that most often than not regulations create socialist-like limitations to people's freedom in exchange of something which could be perhaps regarded as 'safety' but in reality is simply consolidation of the status quo.
I guess our different perceptions of regulations might also come from the countries we live in and we have visited; I have seen so many times the negative results of regulations that I much prefer to risk something by acting in an unregulated environment than having that 'security' around me.
Maybe this is also why I love EtherDelta ha!

[ludovicvuillier]

I am also talking about regulations imposed by governments (the only regulations banks impose are imposed on them) are not always costly, and I am saying this from experience. I advise a company that helps companies get regulated in many jurisdictions. Regulations don't HAVE to be costly nor do they HAVE to limit potential gains. The fact that some regulations do doesn't mean that it has to be this way.

So should there be regulations? Absolutely. Right now, it's too much like the wild west. But as I've said - smart ones. Not idiotic ones that do nothing to actually achieve something meaningful.

I get what you say, however in practical terms what I see around me is that most often than not regulations create socialist-like limitations to people's freedom in exchange of something which could be perhaps regarded as 'safety' but in reality is simply consolidation of the status quo.
I guess our different perceptions of regulations might also come from the countries we live in and we have visited; I have seen so many times the negative results of regulations that I much prefer to risk something by acting in an unregulated environment than having that 'security' around me.
Maybe this is also why I love EtherDelta ha!

Though it will lower the number of scams, that is not my main reasoning. Regulations do lower the number of scams but they do not eradicate.
The main reason I think regulation is good is because it limits the use of funds for criminal purposes.

[astrid.uchiha24]

It really depends in the country where you are situated in my opinion, just like in case of china regarding regulating of ICOs, it was triggered because of so too much scam ICOs and the government can stay silent so they impose a ban first but i think they change it to regulation.

[ludovicvuillier]

It really depends in the country where you are situated in my opinion, just like in case of china regarding regulating of ICOs, it was triggered because of so too much scam ICOs and the government can stay silent so they impose a ban first but i think they change it to regulation.

China didn't regulate - they banned. Completely different.

A company can choose which jurisdiction to be regulated under. The country that will have the smartest regulation will have the most projects built in it.

[Tyr808]

The main reason I think regulation is good is because it limits the use of funds for criminal purposes.

I see - this explains the reasons behind your stance on regulations.
We could, however, argue around the following points:
1. Aren't gains always made as a result of the Greater Fool Theory anyway (criminally or legally)?
2. Criminality is simply the opposite of legality.
3. Is legality about justice, or about power?

[ludovicvuillier]

The main reason I think regulation is good is because it limits the use of funds for criminal purposes.

I see - this explains the reasons behind your stance on regulations.
We could, however, argue around the following points:
1. Aren't gains always made as a result of the Greater Fool Theory anyway (criminally or legally)?
2. Criminality is simply the opposite of legality.
3. Is legality about justice, or about power?

1 - I agree about the greater fool theory, however I fail to understand how that's related?
2 - Yes, it is.
3 - I agree with you that in some instances it is about power, but let's agree that it can also be about justice. For example, when opening an offshore company/ account: they don't care about taxes you may be evading, or anything like that, they just want to make sure you aren't using the account for one of the big 4 - weapons, humans, terrorism, money laundering for one of the above three.

[nomad1109]

There should definitely be more regulation within the crypto markets. Both on exchanges and for ICOs. Right now there are so many ICOs and airdrops and whatever trying to bait people into spending money on a project they are planning on dumping as soon as they can get a good payout. People just price things up into the sky without even doing research because they want to join the next moon. For some it might be good, but a lot of people lose money on it.

[Tyr808]

There should definitely be more regulation within the crypto markets. Both on exchanges and for ICOs. Right now there are so many ICOs and airdrops and whatever trying to bait people into spending money on a project they are planning on dumping as soon as they can get a good payout. People just price things up into the sky without even doing research because they want to join the next moon. For some it might be good, but a lot of people lose money on it.

People losing money translates in people making money. Higher regulated contexts don't offer +/-25% regular changes in price on a daily basis but rather annual and modern investors don't like to wait.

[Zackgeno96]

There is a need to regulate these ICOs as there has been so many scams in the name of ICOc, innocent people are being scammed by these people and authorities are unable to do anything. So there should be strict law to regulate such ICOs and avoid the possible scams.

[giga_999]

By regulations, we will avoid scams and pay attention really  solid ICOs like Crowdholding
1. the great concept of co-creation (worth to get familiar with the concept)
2. solid whitepaper, easy to read and clear
3. team: young and determined professionals

[IamAltcoinfan]

I could say yes ICO should be regulated like IPO's because i witnessed lots of ICO became scam after providing well written Whitepaper and strong Team finally end upto loss . So now there is lots of regulated ICO's are coming like UAHPAY its already registered with government of the country . Some more ICO really coming up with physical address and location and previous project . But there should be some more regulation required.

[Tyr808]

Do you think people who invest in scam are unaware of what they are doing? Not so often. Have a look at threads of shitcoins such as ethereum cash, ethereum dark and the like: everybody knows it is just a pump and dump shitcoin but they are still willing to invest on it 'because my x10'.