ICOs the new ICBMs!?

ICOs the new financial ICBMs? (licensed by Getty Images)

          I'm not an expert on technical analysis, but just look at the meteoric rise of all-time initial coin offerings ("ICOs") funding which nearly quintupled from US$340 million on April 5, 2017 to US$1.66 billion (that's with a "B") on July 25, 2017. (See tracking tool here). 

          When these numbers are viewed on a chart, the steep trajectory looks like the launching of a super-sonic rocket into space: straight up. Have you ever seen any asset class in financial history shoot up by a factor of five (into the billion U.S. dollar range) in about 3.5 months? I haven't. If this trend continues in a sustainable manner, we could be witnessing the birth of a new era in digital investments. But if it does not, then will ICOs be the new ICBMs ("weapons of financial mass destruction" to borrow a term from Warren Buffett)? Regulators have been quick to respond in the past few days with both the U.S. SEC and the Monetary Authority of Singapore issuing statements on how they view the future regulatory approach on token sales and ICOs.

          This is a developing story. Stay tuned for more analysis of this emerging trend: ICOs and its implications for traditional fund raising techniques and Delaware's new law permitting the issuance of securities in blockchain format and securities regulation.

#ICO #techfin #securities #securitieslaw #ICO #SEC #MAS #blockchain #cryptocurrency