World's First Legal Literature on ICOs Calls Out Fundraising Method

Titled "Coin-Operated Capitalism," the paper was released on July 17, 2018, and aims to explore ICOs as a legitimate option of fundraising.

Interestingly, the study cites in its preface that ICOs are a form of technological innovation as entrepreneurs can raise funds solely by making their code public.

While the blockchain industry is famed for adversity against centralized structures, the study noted that ICOs operate in a contrary manner to their decentralized ethos.

As stated in the research, the law professors singled out Polybius, an Estonian financial startup, for making false claims to investors contrary to the actual output after launch.

The research collated data from fifty top-grossing ICOs in 2017, noting $3.8 billion was raised by 200 token issuers that year.

Researchers noted the presence of "Salesmen" in the cryptocurrency sector who sold ICOs and "Bull markets" to the profit-hunting investor in return of tokens.

While the peer-reviewed research singled out the ICO industry and added on commercially-funded reports on ICO scams, prominent industry figures continue to extend support for the controversial fundraising method.

In May 2018, Binance CEO Changpeng Zhao famously stated raising money via ICOs was "100 times easier" than going through the traditional framework of venture capital.

ICO websites seem to be turning more capricious by the day.

A report by Financial Times on July 18, 2018, observed the humorous Olympic Coin ICO. The so-called blockchain-chain sports gateway has team members who claim to have eight years of experience in the sector, putting it around the time when Bitcoin was gaining popularity in cyberpunk circles.