Anyone who reads the business pages these days has to be aware that there has been a surge of interest and activity involving cryptocurrencies, and in particular involving initial coin offerings (“ICOs”). In third quarter 2017 alone, 105 ICOs raised over $1.3 billion. This level of activity has in turn attracted regulatory scrutiny and even enforcement activity. In addition, there is now a securities class action lawsuit pending in connection with an ICO earlier this year, as discussed in detail below. As problems have emerged, investors, regulators, and others understandably have become wary of ICOs. However, because of the opportunities involved, ICOs are likely to continue, and for that reason it remains important to try to understand the promise they represent.
Continue Reading Cryptocurrencies and ICOs: Problems and Promise