The said reckoning will arrive in two waves, according to Concannon. Firstly ICOs will be classified as unregistered securities by SEC, and the holdings of investors would be rendered valueless. The second wave will be:
“The reckoning will come in two waves. First, the SEC will go after ICO market participants. Then, class-action lawsuits against the teams behind ICO projects will surge.”
As Concannon has said, the investors of ICO should keep their eyes open because of the uncertainty in the ICO market.
According to a data from Token Report, the ICOs will raise approximately $7 billion in 2018. Last 2017, the ICO market broke funding records and raised a fiat equivalent of $4 billion.
The public has been asked to comply with existing laws, and those who failed to do so will be fined or punished accordingly by the financial regulators. Doubtful crypto investment products asked for “Operation Cryptosweep,” U.S. and Canadian regulators from 40 jurisdictions have initiated up to 70 investigations.
Lately, founder of McAfee Antivirus Software and crypto enthusiast John McAfee declared that he would no longer cooperate with ICOs nor promote ICO projects due to supposed threats from the SEC.