Initial coin offerings (ICOs), also sometimes called token sales, have exploded as the fastest growing segment of the world-wide capital markets. ICOs gained prominence in 2016 following a $160 million raise by an entity called “The DAO.” (Connie Loizos, TechCrunch) ICO fundraises grew from an estimated $263 million in 2016 to north of $5 billion in 2017. (Oscar Williams-Grut, Business Insider) The trend has continued in 2018, with an estimated $9.5 billion raised through the first five months of the year. (Coinschedule; see also Katie Rooney, CNBC) Despite this growth, there is still considerable legal uncertainty as to the status of ICOs and whether they are subject to regulation as securities in the United States.

Read More