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Chapter 13: INITIAL COIN OFFERING (ICO) - Coggle Diagram
Chapter 13: INITIAL COIN OFFERING (ICO)
Digital/Alternative financing for Private companies (tech firms etc)
Prohibited in Malaysia because of the various risks
Replaced by Initial Exchange Offerings (IEO) in Malaysia
THREE (3) categories of risks involved
Risks related to ICO funding models
Technology-related risks
Regulatory & legal risks
Ponzi Schemes and scams
Money laundering & illicit activities
Regulatory uncertainties (Black swan risk
Insider trading and market manipulation
Speculative 'pump & dump' behaviour & market manipulation
Protocol-related risk
Cybersecurity risk
Open-source risk
Data security
No utility value behind the blockchain used
Lack of transparency
Dilution
No tangible product
Marketing and ICO sales
Lack of due diligence