Why Banning ICOs Won’t Work
In September of 2017, the Central Bank of Russia released a statement detailing the risks involved in investments in cryptocurrencies and Initial Coin Offerings (ICOs). This was just one out of a few actions being taken by Government institutions around the world in response to the rising profile of cryptocurrencies and ICOs. Going back to July of this same year, the Securities and Exchange Commission (SEC) of the United States issued a ruling that classified some coin tokens as securities. This singular action further broadened the debate on the utility tokens and tokenized securities dichotomy.
The most noteworthy opposition to ICOs has to be China’s decision to place a blanket ban on all Cryptocurrency ICOs. This action initially sent alarm bells ringing all over the market especially considering the fact that it came at a time when cryptocurrencies were experiencing a drop in value. September began with a 40 percent drop in total cryptocurrency market capitalization value from $169 billion to just under $109 billion. So when news of the Chinese ban came out, it may have appeared that cryptocurrencies were about to face a huge crisis.
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