In the wake of Bitcoin\u2019s hearty correction, there are now more than 600 cryptocurrencies that have been erased from the marketplace.<\/p>\n
According to Dead Coins<\/a>, approximately 635 cryptocurrency projects have failed to maintain nodes, been abandoned by developers, scammed, or hacked \u2014 any one of the criteria landing the coin in the website\u2019s \u201cdeceased\u201d category.<\/p>\n To this effect, in theory one in three ICOs are now destined for failure \u2014 with 1602 active cryptocurrencies listed on CryptoSlate<\/a> as of July 3rd 2018.<\/p>\n Coupled with a market-wide retracement, the market\u2019s expanding graveyard appears not to have dissuaded Initial Coin Offering (ICO) investment, however. With 539 ICOs raising nearly $12 billion<\/a>, the first six months of 2018 have more than doubled the entirety of 2017\u2019s $5.6 billion<\/a> ICO contributions.<\/p>\n In the face of a feverous investment landscape, a number of high-profile establishments are appealing for prospective ICO investors to maintain vigilance.<\/p>\n In May, the Wall Street Journal<\/a> reported 271 of 1450 ICOs reviewed as having \u201cred flags\u201d \u2014 projects incorporating plagiarized material, guaranteed return on investment, or \u201cfraudulent tactics to lure investors\u201d. While more these suspect offerings received more than $1 billion \u00a0from investors, losses totalling $273 million have been reported to lawsuits and legal proceedings.<\/p>\n Smack bang in the middle of New York Blockchain Week, the Securities and Exchange Commission (SEC) launched HoweyCoins \u2014\u00a0<\/a>a bogus ICO site incorporating all of the classical \u201cflags\u201d.\u00a0While seasoned cryptocurrency advocates may cringe at the site\u2019s claims \u2014 such as holding a \u201cpre-planned pump\u201d \u2014 the SEC\u2019s message appears to have been picked up by a wider audience. A regular commentator on US finance law, attorney Frost tweeted:<\/p>\n HoweyCoin\u2014Too Good To Be True . #VirtualCurrency<\/a> #HoweyCoin<\/a> #SEC<\/a> #ICO<\/a> #InitialCoinOffering<\/a> #MaryLundstedt<\/a> #frostandassociates<\/a> #taxattorney<\/a> https:\/\/t.co\/mHCDMNKbjP<\/a><\/p>\n — Frost & Associates (@IRSTaxIssues) June 26, 2018<\/a><\/p><\/blockquote>\nBuyer Beware?<\/h2>\n
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