Juan Ramon Zarco
Jul 30, 2017 · 1 min read

I am confused by the SEC’s ruling and by the true value to an investor in an ICO. When I tender capital for a share in a company, I am part of that owner, have voting rights, and, when it files an S-1, then it becomes liquid. Also, shares are finite in quantity. Authorized shares must be registered with the state of incorporation. An ICO is not a share in the company, the buyer has no governing rights, and liquidity is suspect. Plus, there is no regulator limiting the ICO quantities. Now, I separate the ICO from bitcoins and bitcoins are finite. Now I see that issuers of ICOs raise cash, no differently from selling shares. But I see here a misunderstanding by the public confusing bitcoins from ICOs. ANd since ICOs can be issued infintely, what is the final economic value. There is only one winner here — the ICO issuer.