Initial coin offerings (ICOs) have become a popular way for companies to raise money in 2018. But recent news still shows that regulators and authorities have no problem taking steps to investigate and shut down offerings they deem as fraudulent or deceptive. E-commerce giant Overstock has made headlines over the last few months by announcing plans to pivot towards cryptocurrency and blockchain technology with tZero ICO and its planned, regulated coin exchange, but their stock has also been tumbling as a probe from the U.S. Securities and Exchange Commission continues.
The regulatory agency is said to be looking into the ICO from the Overstock subsidiary, tZero. Overstock has also reportedly seen its value fall due to a lack of announcements or plans about a purported retail sell-off to help fund a full switch to cryptocurrency-related business activities.
Authorities in Massachusetts stepped in recently to shut down five different ICOs that were being managed by technology start-ups. The Massachusetts Securities Division said the companies did not properly register the digital coins as securities. The agency also ordered the organizers behind the ICOs to return any funds back to investors. As financial regulators across the world move in to take action against ICOs that are not abiding by financial regulations, some social media giants are enacting bans on crypto-related advertisements. This response is clearly an over-reaction and luckily for the industry, there are ways for ICOs to get exposure despite the bans.
News over the past week confirms that Mailchimp has banned all crypto emails, as well as official confirmation that Twitter will prohibit the vast majority of advertisers from promoting ICOs on their site. Right now, the company says they will permit advertisements from verified exchanges and secure wallet services.
There are plenty of people in the community who remain optimistic about the cryptocurrency and ICO market, thanks to the vast amount of legitimate offerings out on the market that promote innovative tech ideas. Scams dominate headlines because they make for juicy news and clickbait on mainstream publications. What isn't being discussed at that scale are the many ICOs give investors the opportunity to contribute towards projects and ideas that will change the world.
We have been watching a few ICOs that have some interesting ideas and are also coming out this week. Keep in mind that we're just presenting online information from a variety of different resources. We are not financial advisors. Please talk with an experienced and professional financial advisor before spending money investing in an ICO or in cryptocurrency.
This week we’re going into depth on Conceirge.io (CGE), Flying Money (FML), and Solve Care (CAN). We looked into each of these projects in depth, and here’s what you need to know about the underlying value of each and why they might be worth investigating.
Concierge.io is a travel booking platform that uses blockchain to connect vendors and consumers together with no commission fees. Flying Money is looking to tokenize assets like real estate and commodities equities to bring volatility to the cryptocurrency market. The Solve Care team is creating a platform that reduces the costs of healthcare while developing new technology to help secure and speed up the transfer of patient information.
Want to read the rest of this newsletter?
Log in below or register for a membership.