WARNINGS? We don't need no stinking warnings. My Mom warned me against girls, alcohol and the "fast life" when I was a teenager" and I ignored that warning (soooo glad). Now the SEC (Securities & Exchange Commission NOT the football conference) is warning against initial coin offerings (ICOs) as that new way of raising capital surpasses $4 Billion. Oh, and climbing even with the "standard" fears of fraud and risks (yeah, like equities are so pure). Here is a WARNING to the SEC we put out a year ago; quit the meetings and get in front of new innovation. Other countries have. (Uh oh! Is that a knock at the door?)
(Bill Taylor/CEO)
Proceeds from initial coin offerings have topped $4 billion this year despite escalating warnings from U.S. officials of rising risks and fraud.
About a quarter of that investment went into startups developing core technology, such as new kinds of distributed ledgers, according data from Autonomous Research LLP. Companies focused on revolutionizing finance and on letting machines exchange information garnered large shares of the total as well.
U.S. Securities and Exchange Commission Chairman Jay Clayton reiterated Monday that many token sales are effectively securities that should be registered with the agency. Clayton added that investors should be on high alert for promoters promising guaranteed returns, and he warned market participants about touting ICOs without determining whether they comply with securities regulations..."
Full Story at Bloomberg.com