The Death of the ICO: Has the US SEC Closed the Global Window on New Tokens?

[ruthbabe]

The Death of the ICO: Has the US SEC Closed the Global Window on New Tokens?

The United States Securities and Exchange Commission’s vigor in pursuing initial coin offerings, or ICOs, has become a major boogeyman within the crypto community.

Most recently, the case against Telegram ended with that company abandoning its planned open network and Gram tokens, which raised $1.7 billion. The question before the crypto community is now: Have we witnessed the death of the ICO? See more for yourself here.

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[hv_]

Hope so, cause ICOs asking for momey and deliver what? A promise? A product? All of that is regulated and even eth did pre mine and delivers what? A scam producing scam?

Wtf, there is only Bitcoin maximum compliant

[Boardmangetpaid]

Is it just ICO or is it all coin offerings in general? Hopefully not, but this is what the bad past of ICO has done to us. There are much better alternatives now such as IEO, and Dynamic Coin Offerings that lets its projects selling tokens under their framework guarantee to return 80% of the raised money back to DYCO participants through buybacks.

[Psynthax]

You ask SEC about DYCO and i believe SEC will also banning DYCO lol.

SEC wants no more money will be going out from US. The majority of ICOs and IEOs banned US citizen from buy the altcoin or participate in ICO or IEO.

This is not a big problem right now.

[davis196]

Initial coin offerings A.K.A ICOs died back in 2018.The bureaucrats from the Security and Exchange Commission (SEC) are late again.Where were they,when thousands of people were scammed by those ICOs 2-3 years ago?By the way,I was hoping that the Telegram ICO was about to be one of the very few legit ICOs in the crypto world.Now,the Telegram guys are abandoning everything,most likely because of bureaucratic pressure.Oh well,I guess we never needed ICOs that much.

[OrangeII]

You ask SEC about DYCO and i believe SEC will also banning DYCO lol.

SEC wants no more money will be going out from US. The majority of ICOs and IEOs banned US citizen from buy the altcoin or participate in ICO or IEO.

This is not a big problem right now.

I hope it's not a big problem.
however, the SEC always brings news that is quite the opposite of the crypto world. for ICO, maybe that's good enough, however, for other types of sales like IEO, I don't think that's a good thing. however, ICO has not had a good development since 2019.

[leea-1334]

Good riddance if this is true news I would say. I mean, I think Telegram is a great product,,, but did they really need to do an ICO and raise more than 1 billion? You know they even promised to pay everyone back 110% of their investment, so this tells me they used the money already to make more money. I say ban all ICOs, good riddance.

[coinfinger]

It would be wise to check out ICO's but that is a very dangerous step towards taking a look at the big ones as well. These new ICO's were always a bit different, never fully understood the concept of giving people tens of millions of dollars to get the money they created from nothing. Bitcoin is not like that, bitcoin has this hard working sector called mining that requires a lot of effort to mine and create, and we all value it like crazy, and nobody is the main owner of it.

ICO's are not like that, there is this team that owns AAAAALLLLL the coins and they sell you their coins. Thank god someone finally stepped in and hopefully they will check whats wrong with them and if they are business' they would be all checked and if anyone scams anybody they would put them in jail like the criminals they are .

[hv_]

I wonder what that means for the ETHs and chains that having enabled all that crap

now next scams: DeFi ... Im sure that SEC and more getting the plot

[Tipstar]

SEC would be looking for any ICO by services that comes under US jurisdiction or ICO that gets US investors involved. If you be sure you have no US connection, you are out of SEC's wrath. 90% of ICOs these days have zero US connection hence safe, Telegram got into the problem just because they had some servers in US.

[Febo]

The Death of the ICO: Has the US SEC Closed the Global Window on New Tokens?

Not at all. They just want that securities gets issued as regulated securities. And not as so in 2018 and before when all ICOs ignored those rules and claimed they are cryptocurrenies or utility coins. Many of them were delisted form exchanges and many more will be delisted in the future.

[Nadziratel]

If this market is not in better places today, one of the most important reasons for this is the restrictions that the SEC is trying to implement. The tough stance of the USA, which is one of the biggest countries in terms of both economy and population, is pressing the market. If the SEC starts to follow a slightly softer path, everything will be better.
By the way, none of this is just about ICOs. I'm talking about the whole market.

[nicecrypto]

Telegram has a specific reason why the sec was on their tail, it wasn't because they conducted an ico, there are still few project conducting ico even if they hardly get funded, the problem with telegram ico was a violation of law, not following due process,  this is different, IOC's are already dead anyways, there is nothing left for the sec to do.

[serjent05]

I think it is not the Deah of the ICO.  Projects can still create their ICO and just evade or ban countries that have tight regulations on it such as the USA from participation in such an event.  US SEC is not the whole world.  There are lots of countries that do not follow the US SEC recommendation so this so-called ICO will continue outside the US jurisdiction.

[Dpat]

This may be the rumor that ICO has ended or closed in USA only. But, still the ICO is coming a little bit of more than the last year also they are promoting in many ways. Recently, Indian Govt. also removed the ban from the crypto market and the exchanges are operating again. I think the ICO won't dead rather it will be regulated in the future time.

[Nalbo]

US has strict regulations for ICO being held on US, by US companies and including US investors. That's why most of the ICOs exclude US investors or at least put that in their terms so that they'd be safe from a lawsuit. Though it has not stopped US companies and US investors from investing. It's a bit sad to see a free country like US is falling behind other open economies of asia and europe.

[Rengga Jati]

ICO was booming around 2018. But it significantly decreased in 2019. And this year, 2020, ICO is really heading to dead. Many projects prefer not to use ICO, only a few. We have already known that ICO will mean nothing. It only gains the fundraising, promising for some exchanges, no exchanges, and then dead coins without any clear announcement about the project. Many ICOs face this problem. Most ICOs cannot avoid being shitcoins or failed projects during the fundraising or even after the ICO has ended.

Moreover, many people said that ICO is only a way for the developer team to earn money freely from the investor and get free labor for their promotion. So sad but it is true the real fact. 

And about this:

The Death of the ICO: Has the US SEC Closed the Global Window on New Tokens?

I have no intention of discus about it. we do not know whether SEC is really working or bot, getting high rate and value or not. It may be only for the booming time and then it will pass without any people aware of it.

[crwth]

If you haven't read the article in the link given by the OP, the answer, there is yes. The article said that ICO is dead and that the ICO Boom is nowhere near fruition. Additionally, the SEC Commissioner Hester planned "safe harbor." for projects for decentralized projects but since COVID happened, it's been pushed back.

I think it's not yet the end, and the article is excellent at giving hope to those who might want to create projects. You'll never know what could come up next or something.

Do you think there are involvements with under the table deals that maybe some people don't agree with or something? No idea, though.

[Ozero]

If the US Securities and Exchange Commission has jurisdiction only in this country, then I would not dramatize the situation. An ICO cannot die due to the position of a government body in only one country. In addition, here we are talking about a specific ICO project. Therefore, the decision to ban the holding of one ICO does not matter much for the activities of the initial coin offer (ICO).
Now, in general, ICO projects are going through hard times, but I would not say that this activity has died.