Fact Check - America and Facebook really threw away ICO?

Fact Check - America and Facebook really threw away ICO?

- Let's dig into the virtual currency boom.

- US SEC prohibits 'Allison Bank' ICO

- Full compensation for SEC's 'Allure Bank' fraud

- US SEC, CFTC "ICO watches for example, illegal acts to catch"

- Facebook ICO Advertising banned ... Why?

- "Protecting the market from indiscriminate ICO scam"

"We will ban virtual currency (ICO) advertising globally."

On January 31st, Facebook announced a ban on ICO advertising. 

On the same day, the US Securities and Exchange Commission (SEC) banned the ICO of the "Allison Bank" in Texas for fraud and the US Commodity Futures Trading Commission (CFTC) investigated one of the largest virtual currency exchanges in the United States, Korean media have reported that the United States is turning from 'yes' to 'opposite', saying that the US has begun to 'ban' virtual currency and ICO.

Did America really ban Silicon Valley's hottest ICOs? Why did Facebook completely ban ICO-related ads promising huge advertising revenues? Let's start a fact check on a series of events.

Prior to the fact check, I would like to briefly explain ICO. 

ICO is an investment fund raising system of companies newly emerging with the appearance of virtual money. 

The start-up market, which was $ 2.13 million in January last year by selling tokens and coins that could be used for future products or services, was $ 740 million in November, (About 786.2 billion won).

Web Design Template / Photo = Stack by the Virtual Currency Disclosure (ICO) Fraudulence Enterprise Arisebank The US SEC banned $ 1 billion (about $ 1.669 billion) ICO planned by "Allison Bank". 

The company was called the world's first decentralized bank to handle more than 700 virtual currencies and was recruiting ICO investors through social networks such as Facebook. The funny thing is that those claiming the world's first decentralized bank have created an ICO page using a $ 39 web page design template.

They bought their stake in the bank and advertised that they had an alliance with the Visa card, but it was all too lame. The SEC plans to freeze the $ 600 million it raised so far and return it to investors.

Allies Bank co-founders Gerald Rice and Stanford are claiming to be innocent, but the SEC has dismissed the claim that it "will mobilize all means to protect investors from fraud in the virtual currency market."

In fact, the US SEC has been closely monitoring the ICO market since last July. The SEC was watching the market with the interpretation that the tokens / coins issued by ICO activities correspond to securities under securities law. 

As the market has become more active and the damage has been increasing, it is the first time we have taken out a knife to a vendor who is doing similar reception to protect investors.

The same goes for the US CFTC. Companies are monitoring tokens issued through ICO. The CFTC gave the view that tokens issued through ICO last October were considered to be commodities or financial derivatives in some circumstances. The CFTC announced that "there is no contradiction in the SEC's analysis and the CFTC's judgment" and maintained a consistent policy of US government authorities on virtual currency and ICO.

Facebook has completely banned ICO advertising. 

Facebook has so far prohibited harmful advertising, including drugs and excessive adult content, all over the world. This decision is based on the users and society affected by the ad.

Anyone can upload Facebook ads easily. 

If you set up your advertisement period, budget, and target through your Facebook homepage, Facebook will let you know the ad price. 

Once you have chosen your payment method and have completed your application, your screening will be completed by default within 24 hours.

Fraudulent ICO companies have been using SNS as their primary marketing window because they can not get good ratings from well-known ICO evaluation sites. 

Facebook is no exception. 

According to the Nikkei newspaper, recently, a man who claims to be a "genius of the virtual currency system" on Facebook has launched an ICO.

ICO does not yet have a systematic safeguard. That is why the boundaries between illegal and legal are vague. Facebook has thrown a precipitation called 'no advertising at all' because they can not judge it.

The Nikkei newspaper reported that Facebook had been embarrassed by allowing fake news and advertisements about Russia's involvement in the 2016 US presidential election. Some people have said that Facebook has caused the division of society.

Facebook CEO Mark Zuckerberg is constantly trying to remedy such fake news by showing his friends' records ahead of ads this year. It is for finding the lost trust again. It is a natural process for Facebook to completely ban ICO advertising.

The United States is not in a position to "counter" virtual money and ICO. Suddenly, the market grows out of control, and the damage is increasing, so it is regulating to protect investors. Efforts to create a healthy market.

The Financial Times (FT) reported on March 25 that Germany's KakaoTalk "Telegram" will conduct an ICO of about $ 1.2 billion in March (about 1.2282 trillion won). 

Silicon Valley venture capital firms are lining up to invest in telematics ahead of this news. 

Sequoia Capital and Clayne Perkins of Silicon Valley, which have become famous for their initial investment in Google, have already pledged to invest $ 20 million each. 

Compared to Korea, where ICO is totally banned and VCs can not participate in ICO.

The ICO market is heading towards maturity this year with the growth period last year. 

I think Korea should not be confused with the wrong information. Accurate information delivery is important as well as consistent policy for investors and healthy markets.