Despite sharp downturns in the cryptocurrency market due to fears about how regulators were going to crack down on virtual currency exchanges in China and South Korea, the market has been rapidly recovering, and investments through ICOs have been as strong as ever. We’ve picked three exciting new projects for this week, but first let’s take an autopsy of recent happenings.
Telegram, which has made headlines for ambitious expansion plans through a massive ICO, recently said they were raising their fundraising target to about $2 billion dollars from a previous goal of $1.2 billion.
Even with the ICO plans from companies like Telegram and Kodak, regulators have been cracking down on what they deem as suspicious ICOs in an effort to keep interested investors safe. The Massachusetts Security Division has recently accused a state resident of selling unregistered securities after they tried to use an ICO to sell ‘Caviar’ tokens.
Authorities said there were not enough safeguards in place to make sure that American citizens could not participate and buy tokens, even though the company website asserted the token sale would only be available for those outside of the country.
They also said the structure of the company and offering was in a way that made it necessary for it to be registered as a security, which Brookline Massachusetts resident Kirill Bensonoff did not do.
Local media said the money raised in the ICO was going towards long-term virtual currency investments and would also be used to buy and sell properties. Bensonoff was said to have already raised about $3 million dollars through the token sale.
The International Organization of Securities Commissions (IOSCO) also released a statement on Thursday expressing concern about ICOs due to their speculative nature and the risks of investors putting all of their capital at risk after investment.
Despite the crackdowns by regulators and some continued skepticism about ICOs, there’s still a lot of optimism due to the large amount of legitimate and potentially world-changing offerings out there.
We have been watching a few ICOs that seem to have some interesting ideas and are also coming out this week. It’s important to note that we are just presenting information from various resources online. We are not financial advisors. If you’re ready to invest in an ICO or in cryptocurrency as a whole, please speak with an experienced financial advisor before spending money.
This week we’re going into depth on Cryder (EXY), Local World Forwarders (LWF), and Ink Protocol (XNK). Cryder intends to move next generation ride-sharing services to the blockchain; Local World Forwarders seeks to piggyback on existing platforms to create a blockchain-enabled global delivery system; and Ink Protocol plans to create a payments and reputation system that spans across online marketplaces. We dug deep into each of these projects, and here’s what you need to know about the underlying value of each and why they might be worth investigating.
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