In the Wall Street Journal analyzed nearly 1.5 thousand initial offers of coins (ICO) and came to the conclusion that the 18.6 percent raise suspicion.
According to the results of a study of 1,450 proposals 271 ICO was discovered the characteristics of the use of “deceptive or even fraudulent means”.
They ranged from hiding or providing false location information, the management of the company, the Issuer and financial information to plagiarism technical information.
Of causing according to the analysis of suspected 271 ICO some have already been closed by regulators or through the judicial processes. Investors trying to get back on the proposals of tokens $273 million investment.
Previously, the company ICOrating released the results of its market research ICO in the first quarter of 2018. The base for analysis was less than WCJ — 412 ICO. It was found that in 40% of cases, the issuers of the tokens did not provide any information and even the names of the leaders, and 9% conducted by the ICO was the beginning of business activities.
The growing popularity of cryptocurrencies has led to the increase in both the number of the initial proposals of the coins and the number of people willing to invest in them.
To protect the interests of investors, alarmed regulators in many countries. On one of the largest in 2017 the market ICO — China — the government imposed a ban on this form of raising capital in September last year. Their example was followed in South Korea. Regulators of several countries have issued warnings to investors about the risks of participation in the ICO.
In the United States — a country which is the largest market ICO, — the Commission of the securities and exchange Commission (SEC) had earlier called the prevention of fraud in this area as one of its main tasks. In may, Commissioner, SEC Robert Jackson (Robert Jackson) confirmed that the protection of the interests of investors in cryptocurrency is a priority for the regulator.
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