David Smooke

@DavidSmooke

ICOs for Dummies, & Not in China

ICOs (Initial Coin Offerings) have taken the startup funding world by storm — to the tune of $1.78 Billion — but not all governments are keen on allowing this much business activity to function outside of their central currency. Most notably, China’s central bank announced on its website that ICOs are now illegal.

Graph via Coindesk ICO Tracker

On Hacker Noon, Ananas Co-Founder Emad Mostaque argued that China was right to clamp down on ICOs as ethics and regulations have not kept up with the high growth of ICOs, and ultimately he thinks, “we can expect the ban to be lifted soon and guidelines put in place.”

But we shall see… In a “Brief Analysis of China’s Ban on ICOs,” Lightyear.io Counsel & Program Manager Lindsay X. Lin details the short and long term effects of this decision. She concludes, “China’s statement on ICOs was a strong, decisive move towards greater consumer protection, greater monetary control, and more effective anti-money-laundering processes.”

Things will probably heat up before they cool down as Hong Kong’s Security and Futures Commission Executive Director of Intermediaries Ms Julia Leung released this statement today, “Those involved in an ICO need to be aware that some ICO structures may be subject to Hong Kong securities laws.”

For more about about ICO & security relations in America, read Andrew J. Chapin’s benjaCoin’s live ICO journey, and his most notably story to date: “The SEC Called About Our ICO, I Answered.

CNBC reported, “The amount of money raised by cryptocurrency and blockchain start-ups via so-called initial coin offerings (ICOs) has surpassed early stage venture capital (VC) funding for internet companies for the past two months.”

Ouriel Ohayon recently penned a great primer on ICOs from the perspective of an early stage venture capitalist: “ICOs for Dummies (like me).” It’s a great read for solidifying your ICO foundational knowledge AND seeing how a venture capitalist approaches this new funding phenomenon.

When determining whether you should participate in an ICO, consider SkillShare CEO Michael Karnjanaprakorn’s 7 Ts Framework: Thesis, Token Network Effects, Team & Leadership, Technology & Developer Ecosystem, Transparency & Trust, Traction & Roadmap, and Terms & Legal.

For more on the INTERNET’s impact on CURRENCY, check out the latest stories on our sister publication Keeping Stock, as well as our collections on Bitcoin, Cryptocurrencies, Money, and of course, ICOs.

Sometimes when I hear, “ICO, ICO, ICO,” I think, “Iko Iko un-day
Jock-a-mo fee-no ai na-né.
” It’s a colloquial reminder, when something really starts trending in the tech industry, it’s good to take a step back and listen to some music...

5 Must Read Tech Stories This Week That Have Nothing to Do With ICOs:

Until next time, don’t take the realities of the world for granted.

Kind Regards,

David Smooke, @ AMI

P.S. ICYMI — check out our company’s origin story.

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