ICOs Come Back in a More Regulated and Stricter Form

Even though many experts believe that initial coin offerings are an outdated trend, ICOs return in a regulated form. Russia, Germany and the United States have already implemented regulatory frameworks to allow the sale of tokens.

Germany – signs that ICOs are coming back

For example, the Federal Financial Supervisory Authority of Germany, Bafin, recently approved a sale of tokens from the blockchain company called Fundament Group. This project is trying to raise $ 278 million for its development efforts. The really positive aspect is that both accredited investors and retail investors have the opportunity to participate in this sale.

In order to participate in the ICO, investors will have to pass a strict KYC test.

United States

The US Securities and Exchange Commission (SEC) recently approved an offer of $ 28 million for Blockstack. The regulator also approved “Younow” streaming platform to distribute $ 187 million tokens to its creators and content users.

Russia

Recently, the Russian government has adopted a legal framework designed to streamline crowdfunding activities within the nation. The State Duma recently voted in favor of a law that will allow crowdfunding to become much easier for tech enthusiasts and startups.

The draft law will also consider the regulation of the Russian digital economy. Including the national altcoin sector and the domain of IPR (intellectual property).

The ICOs are replaced by the IEO

According to a report recently published by ICObench, the number of ICOs has steadily decreased since August last year. Partly, the reason is also the low success rate of only 28%.

Even though the popularity of ICOs has dropped significantly, the phenomenon of IEO (initial offer on exchange) takes its place.