More than 6% of 2018 financial and securities lawsuits related to IPOs and cryptocurrencies, according to a report by Cornerstone Research..
Analysts talk about an increase in the number of accusations in this area, since for the entire last year the figure was 5.75%. However, they note that the total number of complaints related to the Central Bank has also increased..
The report also says that approximately 8.5% of the total number of applications received will be considered in court in 2019..
In the US alone, accusations have been brought against projects such as Ripple Labs, Bitconnect, Paragon Coin, Latium Network and others. The lawsuit against XRP managers said Ripple is making hundreds of millions of dollars selling its cryptocurrency to retail investors, which has all the traditional traits of a security. One of the study’s authors is a former SEC Commissioner.
Crypto startups often disappoint investors.
Earlier we wrote that only 20% of the top ICOs delivered on their promises.
text: Ivan Malichenko, photo: Alexander Kirch / Shutterstock