ICOs Reserves to Decrease Significantly

Project that was included to the research spend around 2500 ETH per month, Golem and Tezos are record holders 
02 August 2019   314

The Block analyzed the development of 57 ICO projects, which attracted about 8.2 million ETH. They found that since the close of the token sales, 5.9 million ETH (72%) were either moved or spent.

So, on average, projects spend or move around 2500 ETH per month. The record holders among the studied projects were Golem and Tezos. The first transferred 138 thousand ETH to the address of the Golem Foundation, and the second distributed 60.7 thousand ETH to four addresses where they remain to this day.

Some other startups, apparently, are forced to cover part of the transaction costs from the reserves, although they have cash.

In the first quarter of this year, the ICO projects raised around $ 118 million - 58 times less than in the same period in 2018.

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   304

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.