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articles on initial coin offerings (ICOs)

https://www.nytimes.com/2017/10/27/technology/what-is-an-initial-coin-offering.html
https://www.nytimes.com/2018/02/28/technology/initial-coin-offerings-sec.html
https://www.nytimes.com/2018/04/02/technology/virtual-currency-arrest-centra.html
https://www.nytimes.com/2017/06/23/business/dealbook/coin-digital-currency.html

Initial coin offerings have come out of nowhere in 2017 to become the talk of Silicon Valley and Wall Street. Programmers have raised over $3.2 billion this year by selling their own virtual currencies to investors.

Jay Clayton, the chairman of the S.E.C., has said on several occasions that most of the virtual currencies that have been sold should have been categorized as securities and registered with regulators, which few companies have done.

Kinda interesting. Sounds like a lot of Wild West money in this domain. Probably why the S.E.C. has gotten involved...it has bubbled up to be a significant market, with investors effectively buying shares of companies outside the normal channels.

3 responses

Interesting indeed. Thanks for sharing

I wonder to what extent this has historical analogs? At one point, I imagine, trading in U.S. company stocks was the Wild West, followed by all manner of investments that were fringe at the time, and became mainstream.

One curiosity is how one could arbitrage the crypto market? Just going long is bound to lead to ruin eventually in a bubble.