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Report: US investors felt they were deceived in ICO projects

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TL:DR Breakdown:

  • US investors feel that they were deceived by ICO project creators, who withheld the project information from them.
  • They added that more accountability and investor protection could contribute to the growth of ICOs and the crypto market.

A recent survey conducted by Xangle suggests that some US investors who participated in initial coin offerings (ICOs) feel they were deceived at some point. They also want the ICO project creators to face due consequences. The main objective of the survey was to understand the overall sentiment and experience of retail investors in the United States who participated between 2017 to present. 

According to Xangle, about 600 investors were surveyed. A majority of them (56 percent) expressed that they can still participate in ICOs if they are provided with more research and information about the project. Thirty-three percent of the US investors felt that they were deceived in ICO projects. They argued that information about the projects was withheld from them. Most of these investors want the project creators to be held criminally liable for withholding the information.

US investors want more accountability in the crypto market

In the survey, the US investors further highlighted that lack of security, regulation, and awareness stunts the growth of the crypto market in general. They believed that more accountability, and information about a project, can encourage more investment, especially in ICO projects. James Junwoo Kim, Xangle’s co-founder, commented:

“The survey findings confirmed our belief that there’s a lot of opportunity and need in the crypto industry for better transparency and visibility for upcoming crypto projects, which can build investor trust and confidence.”

ICO has been working as a common fundraising strategy for startups to generate capital from the public. However, there was a lot of craze around ICO in 2017, which led to the bubble burst as many projects were analyzed to be frauds. This brought the strict attention of regulators on ICOs, as seen today with the US Securities and Exchange Commission (SEC). 

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Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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