ICOs to Raise $118M in Q1 2019, - WSJ

That's 58 times less than in the same period last year when $ 6.9 billion was collected
01 April 2019   539

Cryptocurrency startups managed to raise $ 118 million through ICO in the first quarter of 2019, that is, 58 times less than in the same period last year when $ 6.9 billion was collected. Such data are reported by Wall Street Journal with reference to the TokenData portal.

According to the WSJ, investors are deterred by regulators actions against non-compliant ICOs, the proliferation of fraudulent schemes and an overall decline in the market.

TokenData analyzed 2500 project and figured out:

  • 55% failed to attract funding
  • tokens of only 15% of projects, which was able to raise funds, are being traded above ICO price

The article also cites the words of lawyer Joshua Kleiman, who believes that the idea of ​​ICO, despite the presence of many negative examples, deserves development, perhaps in the format of placing digital securities after defining the necessary legal concepts by regulators.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   182

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.