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   1496

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.

Dutch Crypto Startup Founder Busted

Komodore64 said they developed blockchain games and sold $86 000 000 worth K64 tokens, but investors don't receive any profit
13 November 2019   169

Dutch police arrested the founder of blockchain startup Komodore64, who allegedly raised $ 86 million from private investors. The company has already filed for bankruptcy, and investors and employees accuse it of fraud, according to Sprout.

Komodore64 developed blockchain games and invited investors to invest in the K64 native token. One of the investors, the newspaper writes, lost 600 thousand euros. As soon as partners and employees publicly stated that they had not received the promised fees, the company filed for bankruptcy.

Founder Sam Narain allegedly convinced investors that the startup supported the banking giant Goldman Sachs, but a group of bank representatives at one of the meetings turned out to be fraudulent.

In recent weeks, Narain has been living in the Hague Hilton, where he was hiding from angry investors. The names of his possible accomplices are still unknown, as is the fate of money.

Employees claim that only a party in honor of the launch of the project cost tens of thousands of euros.