The initial coin offering (ICO) market has achieved significant growth over the last two years, attracting hundreds of players and raising billions of dollars in crowd-funded investments. However, this growth has also whet the appetite of unethical and scammy businesses.
Tokeny CEO Luc Falempin, whose company focuses on simplifying token purchases and management for both issuers and end users, told Cryptovest there should be a methodology to conduct successful, secure, and sustainable ICOs by standardizing good practices and ethical rules. Such a framework will help regulators understand the market and allow ICO projects to prepare for official compliance.
“Innovations always bring opportunism, with good or bad intentions. ICOs have the ability to disrupt the investment mechanisms of the worldwide economies therefore malicious people will try to profit from the immaturity of these new fundraising systems. That is why we thought it helpful to provide the community with a list of business, tech and legal guidelines to conduct compliant ICOs.”
BIC wants a safe, investor-friendly ICO market
Falempin’s views are mirrored by a group of blockchain investors who have been working to bring back the integrity of ICOs by supporting only credible and viable projects.
The Blockchain Investors Consortium (BIC) has emerged as a champion of helping investors make better decisions by sharing information on due diligence to prevent possible scams. The industry alliance was established in August 2017 to assist in the development of the ICO market and provide a safe and mutually beneficial investment atmosphere.
Krypton Capital, the publisher of Cryptovest, and its founder and CEO Ilan Tzorya recently joined the BIC.
The consortium currently has 150 members ranging from retail investors to cryptocurrency-focused hedge funds with more than $5 billion of digital assets under management. The group is committed to helping members make informed investment decisions by information sharing, which could play a key role in light of recent data revealing nearly 20% of ICO projects to be possible scams.