ICOs have become a very popular way for companies to bridge money gaps in fundraising and bring good ideas to life. Despite the massive amounts of money that has flowed to projects like Ethereum and Telegram, some top virtual currency investors have started to turn people away from ICOs. There are concerns over looming regulations by the U.S. SEC that could hamper fundraising operations.
Other skeptics believe that a great number of prospective projects are abusing the ICO model and would be better served raising money through traditional venture capital. Some speculate VC firms will start to require veto power with token sales if they are looking to pour money into a cryptocurrency startup.
ICO fundraising brought in just about $1.2 billion in March, which was about 25% less than February. However, the vast majority of ICO investing approaches have not really changed since last year, and a lot of investors are still bullish on the ICO.
A recent hearing in the U.S. House of Representatives also seems to suggest the SEC is interested in a “balanced approach” to regulation. SEC division director William Hinman said his agency was looking to pinpoint regulation policies that would protect investors and foster capital growth. Both Hinman and SEC chief Jay Clayton agree most ICOs should be seen as securities. In other words, regulators are not looking to shut down the ICO model. Rather, they are looking to understand it, and to do what they believe will protect investors from scammers. This is good news for ICOs and the outlook is strong for 2018.
We have been watching a few upcoming ICOs that appear to have good potential. However, it’s important to remember that we are not financial advisors. We are just presenting information about ICOs that can be found from a variety of online resources. If you are interested in investing in cryptocurrency or an ICO, please talk with an experienced and professional financial advisor.
This week we’re going into depth on Blocnation (BNTN), DIW Token (DIW), and Opiria (PDATA). We looked at several aspects of each project, including each whitepaper, advisory board and team, to understand the underlying value for each project. Our ICO research also focuses on the growth potential for each project. In the membership portion of this article, we give readers insights into why the below ICOs should warrant further investigation.
Blocnation is looking to give the world a closed loop payment option using Komodo’s wallet. The DIW Token project is planning to decentralize global security to help keep private sensitive data safer. Opiria intends to give people a way to make money by monetizing their personal data. What are our thoughts? Keep reading.
Want to read the rest of this newsletter?
Log in below or register for a membership.