SINGAPORE (July 23): Singapore is now the third-largest initial coin offering market in the world, behind Cayman Islands and the British Virgin Islands, according to a joint report by PwC and Crypto Valley. Money raised from ICOs in Singapore in the first five months of this year has already exceeded what was raised last year, amounting to $1.2 billion.
It does not take much to issue an ICO — a white paper and some good marketing chops for starters. The consequences of this can hardly be unexpected; with little to no regulations around issuing what is known as utility tokens, the sector has been hit hard by fraud. Some reports put the number of scams at over 80%, with legitimate projects occupying less than a quarter of all ICOs.
“I think there’ll be a significant fallout from ICOs for two reasons,” predicts Nouriel Roubini, professor of economics at New York University’s Stern School of Business.