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.
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.