INITIAL COIN OFFERINGS – ARE THEY JUST GETTING STARTED OR COMING TO A HALT?

The rise of cryptocurrencies has created a new method to raise capital, the initial coin offering (“ICO”). An ICO is a process used mainly by private tech startups from the digital sector, where a company creates a new virtual coin or token (“coin”) and offers it for public sale. ICOs are raising amounts of money comparable to the amount of money raised by venture capital fundraising. In the third quarter of 2017, ICOs reportedly raised $1.32 billion and early-stage tech companies using venture capital fundraising raised $1.41 billion. ICOs are on pace to…
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