So far 2018 has proved to be the year regulators around the world choose to bring some order in the wild crypto space. This is very evident with ICOs which have been subjected to massive scrutiny in a bid to root out the scams. The cryptocurrencies have also suffered with the market losing over half its value since the turn of the year. However, despite all this the first five months of 2018 have proved that ICOs are still very popular as EOS and Telegram have managed to raise over $9 Billion in investor funding according to a report from CoinSchedule, an ICO listing site.
In the last quarter of 2017, interest in Bitcoin and other crypto coins was at an all-time high and this saw massive attention focused on anything crypto related. ICOs, a crowdfunding model that helped bypass tedious traditional methods was the greatest beneficiary of this newly found limelight and they were able to raise millions of dollars in investor funding. However, numerous reports of scams in the space have forced regulatory bodies around the world to crackdown on this new model of funding.
The SEC, in particular, has led the way for other regulators in pursuit of fraudulent ICOs and so far has managed to bring down a number of them. The latest culprit is Centra, an ICO that gained popularity after it was endorsed by boxing superstar Floyd Mayweather. Its founders have been arrested and charged with fraudulently selling unregistered securities to unsuspecting investors.
Another victim was Bitcoiin B2G an Ethereum based crypto token endorsed by movie star Steven Seagal. In March, the crypto was served with an order to cease and desist after Gurbir S. Grewal, the New Jersey Attorney General found its ICO in violation of the states uniform securities law.
However, the performance of EOS and Telegram ICOs indicates that this new way of funding is still very popular with investors despite the pressure from regulatory bodies.
Can upcoming ICOs break the EOS and Telegram ICO record? Share your thoughts in the comment section below.