Token Report: most tokens are speculative instruments

Token Report states that only 1 out of 10 tokens really comes in use nowadays
25 October 2017   1626

More than 200 Initial Coin Offerings raised over $3 billion during 2017. Token Report, a large ICO database, analyzed the use of tokens from 226 coin sales and found out that only 10% of tokens are actually used in running their networks following the sales. For different undiscovered reasons all the other projects did not work out and their tokens could be only traded.

The U.S. Securities and Exchange Commission highlighted that some tokens can be considered to be securities as they are not in use, and this can lead to fines and judicial proceedings.

If the coin is regulated as a security, rather than a utility, that limits how it can be traded and raises questions about whether developers are prepared to comply with securities regulators.

Galen Moore
Co-founder and chief executive,Token Report

The Commodity Futures Trading Commission issued a Primer on Virtual Currencies on October 17, stating that virtual tokens can fall under its authority.

Thuswise, investors remain at risk that the projects that their tokens are supposed to run on will never be implemented.

Neo Foundation to Withdraw $11M From Cold Wallet

These funds will be used to finance its operations in currrent reporting year and $190M are stiill in the vault
26 March 2020   965

On March 25, the Neo Foundation announced the withdrawal of 1,660,865 NEO ($ 11 million) from the cold wallet to finance its activities in the current reporting year. About $ 190 million are still in reserves.

According to rules established in the Neo White Paper, the NEO tokens maintained by the Neo Foundation are mainly used to continuously support Neo's technological development, ecosystem growth, community expansion and the normal operations of the foundation and related organizations. 


Neo Foundation

According to the publication, 1,660,865 NEOs were transferred “from a blocked account to a current account”. As the information on the blockchain shows, these funds were directed to an address containing 14.6 million NEO or about $ 100 million. The project does not disclose who controls this address and what fate awaits the released tokens.

White paper Neo suggests that project costs in any given year should not exceed 15 million tokens. In the near future, a financial report for 2019 will be published.

At the time of publication, NEO is the 23rd largest asset on the market with a capitalization of $ 479 million. The price of one NEO is $ 6.79.