Wednesday, July 19, 2017

Ethereum Co-Founder Says Crypto Coin Market Is a Time-Bomb - Bloomberg

Earlier in the article: "Firms have raised $1.3 billion this year in digital coin sales, surpassing venture capital funding of blockchain companies and up more than six-fold from the total raised last year, according to Autonomous Research."

"Hoskinson, who runs technology research firm IOHK, is part of a growing chorus of blockchain watchers voicing concern about the rapid surge in cryptocurrency prices and digital coin crowdsales that have collected millions of dollars in minutes. Regulation is the biggest risk to the sector, as it’s likely that the U.S. Securities and Exchange Commission, which has remained on the sidelines, will step in to say that digital coins are securities, he said.

Startups raising money through ICOs usually skip the safeguards required in traditional securities sales, like making sure they’re dealing with accredited investors and verifying the source of funds. That could lead to lawsuits in the future, as digital coin buyers can sue the issuer claiming they didn’t know the risks of buying those assets, Hoskinson said."
Ethereum Co-Founder Says Crypto Coin Market Is a Time-Bomb - Bloomberg
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