In 2016, blockchain startups raised some $200 million in Initial Coin Offerings (ICO), a new form of crowdfunding based on cryptocurrency tokens. This figure might not be much compared to the billions being poured in by VCs and Kickstarter-style crowdfunding, but it shows a huge year-over-year growth for blockchain crowdsales.
Some of the startups have raked in millions of dollars with barely more than a promise and a website; several have failed to deliver on those promises.
As is with blockchain itself, expert opinion is highly polarized on the crypto–token crowdfunding hype, its reliability, its legality and its future. Here's what you need to know.
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