ICOs are tricky. However, recently, the US Securities and Exchange Commission clarified that cryptos such as Bitcoin and Ethereum can be considered as commodities while ICOs are considered as securities. And because of this, John McAfee has turned his back on ICOs. McAfee was once a supporter of initial coin offerings. However, he explained on Twitter that he was “no longer working with ICOs” when a Twitter user asked for an “advise on the next best ICO to invest”.
McAfee mentioned that those who are “doing ICOs can look forward to arrest”. He continued that “it is unjust but it is reality”. So what exactly is next now? He mentioned though that he is going to be “writing an article on an equivalent alternative to ICOs”.
Reversal Was Surprising
If you will look at what John McAfee was doing in previous months, it seemed that he was very eager to fight regulators even planning to run for office or make the campaign as a platform to give people an idea about cryptocurrencies. He even said that he would “fight with every last breath to ensure that this absurd overreach by the SEC will not stand”.
McAfee has been known for his bold predictions. He mentioned that by 2020, Bitcoin will reach $500,000. He even increased his prediction to $1 million when the market was booming.
Overvalued ICOs?
If you will look at the number of ICOs in 2018, it has surpassed the number of ICOs in 2017. Investor Brian Kelly even mentioned that ICOs may actually be “overvalued”. He also added that many investors are on a “wait and see” mode. He said that “people are starting to say ‘I’m going to put the brakes on ICOs, right now. I’ve got my portfolio; I don’t need a seventh or eighth ICO’. To me, ICOs are not as hot as they used to be”.
Brian Kelly is the founder and CEO of BKCM. It is a new platform wherein investors can manage blockchain startup called the REX BKCM ETF. It was launched in May and this platform is said to have around 32 different companies in its umbrella. All of these 32 companies are working with blockchain technology or cryptos. For Kelly, he believes that this gives traders the ability to invest in cryptos with minimal risks.
He said that “I get asked all the time on how to invest in blockchain technology and cryptocurrencies without dealing with shortage, the fears of hacking hedge funds, etc. My hope is the BKC ETF can provide this desired equity allocation to institutions and individuals alike”.
With increased scrutiny against ICOs, are we going to see a decreased number of ICOs in the coming months? In addition to this, there are studies suggesting that there are a lot of ICOs that can be considered a scam. In fact, it is said that 1 out of 5 ICOs could potentially be a scam.
These measures can be a good thing for the entire crypto industry now that regulators are becoming strict when it comes to ICOs. Unfortunately, it becomes harder for those who are planning to start a crypto project to get funded in the future if this is the case.
