'Initial Coin Offering (ICO)' An unregulated means by which funds are raised for a new cryptocurrency venture. An Initial Coin Offering (ICO) is used by startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks.
Many ICOs are out there in the market, some are legit brilliant ideas, while some are merely scams leveraging from its non-regulated decentralized nature.
First country to ban was China. The country's authorities have ruled that initial coin offerings are illegal and has banned them from taking place. The Peoples's Bank of China (PBC), the country's central bank, and other regulating authorities have said companies raising cash via a cryptocurrency or digital token will not be allowed.
The ban comes after South Korea noticed that “raising funds through ICOs seem to be on the rise globally” and domestically.
The idea of an ICO was to fund raise yet benefiting investors globally, however due to its concept and lacking of due diligence, some deemed as an opportunity to ponzi scam yet getting away easily as there are no governing bodies yet.
In my opinion, it will be a matter of time this idea of ICO will either be pressed down and destroyed or stringent rules and regulations be implemented. In that case, wouldnt ICO be just another IPO yet money lost to organizations in between charges and fees? What are your views?
