Crypto Exchange Offering Overtake ICOs

The King is dead. Long live the King!

Initial Coin Offerings flourished in 2017 and 2018, but with the Bitcoin volatility, ICOs are vanishing rapidly.

New on the scene are Token Exchanges that are engaging, mostly off-shore, in Initial Exchange Offerings.

Touted as being “safer” than ICOs, IEO’s are where the exchanges, like Binance, OKEx or Hubi, act like investment banks, scrutinize the ICO and decide whether to list it or not.

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Logically, the exchanges say that if they were about ripping off customers, they wouldn’t last long, so trust us.

The SEC is apparently not buying it.

And, unfortunately, the exchanges have also fallen victim to hacks, security problems and false trading volumes.

So, it’s still a wild frontier, even though the Wall Street Journal notes that IEOs raised over $156 million in May.

https://www.wsj.com/articles/crypto-startups-are-raising-money-again-with-a-twist-11559995203?ns=prod

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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