Last month, The Wall Street Journal released a much-noted analysis of 1,450 cryptocurrency offerings, finding that 271 of them were deceptive if not outright fraudulent. That was shocking, writes Professor James Cooper who expected three times as many.
In a recent op-ed for Cointime, Professor Cooper explains how with the explosive growth in the value of bitcoin in late 2017, everyone and his/her uncle got into the blockchain business, ready to issue their Initial Coin Offering (ICO) and take advantage of the huge amounts of investment money sloshing around. By early 2018, a myriad of White Papers were posted, some of them with plagiarized text, glorified business models, fictitious teams, and overstated and unrealistic revenue figures that rival any boiler room doing the same with penny stocks.
Legitimate companies, with solid technology and realistic business plans, writes Professor Cooper, should consider collaborating with the Securities and Exchange Commission, Commodity Futures Trading Commission, and the North American Securities Administrators Association to help create workable regulations that reward innovation and honesty.
Read the full article here: http://www.cointime.com/blockchain/10822.html