Crowdfunding And ICO
The ICO are a way for companies to raise money.
More precisely, it is an operation through which a start-up provides the cryptomonete to investors, commonly known as tokens , with a view to investing.
Several times the proceedings proved controversial, mainly due to a long series of frauds , with the founders of fake companies ready to run away with the money.
China and South Korea have banned them , while in Italy at the moment is highlighted a difference between 3 different types of token, to be reported to the amendment of the anti-money laundering discipline of 25 May 2017 n. 90, which in turn amended the decree law 231/2007, inserting the definition of virtual currency .
The risk with the ICO (Electrum UBTC) is evident. Many companies try to raise funds without having any product, even on paper. In several jurisdictions, the regulation governing ICOs is practically a black hole, but in other realities we are trying to regulate them, even if we have to say that the space is incredibly vast and complex.
With the growing interest surrounding the universe of cryptocurrencies, investors are moving with increasing conviction towards the sector. But exchanges are often perceived as risky due to the numerous hackers , which led to the theft of billions of dollars. In addition, often unregulated trading on these exchanges has led to a strong push towards the traditional market.
An example is represented by futures on Bitcoin , which promise to consolidate cryptocurrencies as investment assets. But these are not easy operations, so much so that in the United States numerous attempts to obtain an ETF on Bitcoin have not been successful , also leading to large losses on the prices for the entire sector.
More than 800 cryptocurrencies are dead . To certify the pitiless is Dead Coins, a website that has kept track of all the virtual currencies that for one reason or another have vanished into thin air and have lost completely value.
The cryptocurrency market has enjoyed unprecedented attention and interest over the last 18 months, but at the moment is attracting more and more distrust around itself, leading many to make a parallel between the boom that affected the industry to what it led to the dot-com bubble in 2000.
The comparison, recently dusted off also by Joseph Lubin , co-founder of the cryptocurrency Ethereum, suggests that the sentiment towards the entire sector is decidedly bearish at the moment. So much so that Yoni Assia , CEO of eToro, has recently said that 95% of cryptocurrencies will end up nothing, because it is the start-up financing.
How a cryptocurrency is born (and dies)
Digital tokens are created through a process known as Initial Coin Offering (ICO) , in which a start-up can issue a new digital currency that investors can buy.
The investor does not obtain a shareholding in the company but the cryptocurrency object of the offer. Once in possession of the digital currency, the investor can decide to keep it in his wallet or use it to buy products and services designed by the company that launched the cryptocurrency.
The success of the ICO (Electrum UBTC) derives primarily from the fact that the prices of digital currencies are very low during the issue and therefore could offer great returns for investors.