White papers of most ICOs do not contain …

White papers of most ICOs do not contain …

White papers of most ICOs do not contain critical information – Research

The University of Luxembourg has published a study titled “ICO Gold Rush: It’s a Scam. It’s a bubble. This is a super-challenge for regulators “, in which he analyzed 100 ICOs and pointed out the signs of a” classic speculative bubble “in this area.

Researchers criticized ICO organizers for the fact that many of them, at least 60%, resort to the practice of presales, selling their tokens to a limited group of investors even before the start of the official part of the campaign. As the authors of the report note, most often these investors organize pump-and-dump schemes and sell their tokens shortly after the end of the ICO..

However, the ICO problems do not end there. Researchers point to a number of worrying signals that future investors should look out for. Thus, “white papers of ICOs usually contain very limited information about issuers and guarantors” and do not provide “physical, postal or other contact address” of the company organizing the ICO. Only 40% of the white papers contained the correct address, and 18% did not provide any information about the issuer at all.

In addition, 70% of ICOs did not provide any legal information about their campaigns..

“Almost all ICOs rely on legal holes. More precisely, the organizers are counting on the fact that they will be able to take advantage of the holes or remain in the gray zone, “write the authors of the report..

The authors point out that almost all white papers have one thing in common: they provide information on how the cryptocurrency they will issue will be used. However, 4% white papers do not even contain this.

White papers of most ICOs do not contain ...

Although the researchers admit that such omissions can be associated with “stereotypical behavior of crypto geeks”, at the same time, they can indicate that the organizers have certain criminal intentions.

Despite the fact that governments around the world are beginning to regulate the ICO sphere, the number of fraudulent campaigns is growing every day. Thus, the Confido ICO organizers, which raised $ 375,000, disappeared soon after the fundraising was completed. Later, information appeared on the project’s website that investors would be able to get their money back, but how much it corresponds to reality is not yet clear.

Photo: Andrey Cherepanov

White papers of most ICOs do not contain ...

Similar articles

admin