The Paynter Law Firm PLLC
Representing Individuals and Small Businesses on a Contingency Fee Basis

ICO Survey

Digital Currency ICOs

What are ICOs?

ICOs, or "initial coin offerings", are a method of online fundraising for open-source networks such as those created for cryptocurrency. In exchange for their contributions, investors receive digital coins.

In recent months, large sums of money have poured into ICOs. Reuters reported that ICOs have generated approximately $2.2 billion in 2017 alone and listed the following as the top 10 ICOs:

  • EOS: $289 million
  • Filecoin: $233 million
  • Tezos: $232 million
  • Bancor Protocol: $153 million
  • Kik: $100 million
  • Status: $95 million
  • TenX: $83 million
  • Press.One: $82 million
  • MobileGo: $53 million
  • KyberNetwork: $50 million

Within just hours of its Smart Token ICO, Bancor is reported to have raised $153 million; however, Bloomberg recently reported that Bancor has lost over 50% of value since the June ICO.

On December 11, 2017, the SEC Chairman issued a statement regarding cryptocurrencies and ICOs. The statement mentions key issues and areas of concern.

Recent News

Recently, a suit was filed against Ripple Labs Inc. According to an article in Bloomberg, the Plaintiff has alleged that the sales of Ripple's XRP tokens amount to an attempt by Ripple to raise millions of dollars by selling unregistered securities. 

XRP tokens are just one of many digital currencies on the market today. Others include those mentioned above as well as Bitcoin, LiteCoin, SwiftCoin, Ether or Ethereum, Tether, and many more.

In recent months, questions  have arisen such as:

  • Whether digital coins should be registered and classified as securities
  • Whether ICO participants have invested, purchased, or donated
  • What the future looks like for digital currencies and whether ICO participants should be concerned

Should I be Concerned?

Although many, if not most, ICOs have the characteristics of securities as defined by state and federal securities laws, the majority of ICOs have not complied with the registration and disclosure requirements of the Securities Act of 1933. Investors participating in ICOs may be left with illiquid investments with little transparency and much risk.

Things to Consider:

  • Have you been promised or guaranteed a return from your ICO investment?
  • Did you "invest", or did you "donate"?
  • Are you familiar with the required market regulations?
  • Do you have questions or concerns about your investment?

If you have questions or concerns about your rights and options, contact us today. The call is confidential, and there is no cost for the consultation.

Interested in more information? Contact us today by calling (844) 472-9683, clicking Contact Us above, or by completing the form below. We offer a free, confidential consultation and would be happy to talk with you about your rights and options.

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