The future of raising finance - a new opportunity to commit fraud: a review of initial coin offering (ICOs) scams.
Over one billion US dollars were invested in blockchain in 2016. The potential application of blockchain extends far beyond cryptocurrencies. One use of blockchain is an Initial Coin Offering (ICO), a digital method of raising finance involving issuance of tokens in exchange for cryptocurrencies or...
| Published in: | Crime, Law & Social Change Vol. 73; no. 4; pp. 417 - 442 |
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| Main Authors: | , , |
| Format: | Article |
| Published: |
Springer Nature
May2020
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=142828078&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 142828078 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 09254994 CRG jtl: Crime, Law & Social Change issn: 09254994 maglogo: N pubinfo: dt: May2020 vid: 73 iid: 4 pid: 237 pub: Springer Nature artinfo: ui: 142828078 10.1007/s10611-019-09873-2 ppf: 417 ppct: 25 formats: fmt: – @attributes: type: T – @attributes: type: P size: 657KB tig: atl: The future of raising finance - a new opportunity to commit fraud: a review of initial coin offering (ICOs) scams. aug: au: Tiwari, Milind Gepp, Adrian Kumar, Kuldeep affil: Bond Business School, Bond University, 4229, Gold Coast, QLD, Australia su: Fraud Fraud in science Finance Coins Fundraising Blockchains sug: subj: Fraud Fraud in science Jewellery and watch merchant wholesalers Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers Grant-making and giving services Grantmaking Foundations Finance Coins Fundraising Blockchains ab: Over one billion US dollars were invested in blockchain in 2016. The potential application of blockchain extends far beyond cryptocurrencies. One use of blockchain is an Initial Coin Offering (ICO), a digital method of raising finance involving issuance of tokens in exchange for cryptocurrencies or fiat money. It is a cheaper, easier and quicker way to raise funds compared with traditional public offerings. However, it has raised a new opportunity for fraud. An estimated 10% of ICO funds have been lost to fraud. Using case-study analysis, this study determines characteristics of such fraud schemes and the regulatory changes made in response to them. The study reveals key lessons for investors in terms of proactive steps that can be taken to protect themselves from being victims, for issuers to ensure awareness and take steps to secure investors' trust, and for regulators to promote a safe environment. To the best of our knowledge, this study is the first to document the effect of ICO fraud schemes on the regulatory environment, which is going through a series of amendments to provide protection against such fraudulent schemes. Additionally, it provides direction for future research to further investigate the risks of this new method of raising funds. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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