【WSJ】Initial Coin Offerings Surge Past $4 Billion and Regulators Are Wor（FRIDAY, DECEMBER 15, 2017）

Initial Coin Offerings Surge Past $4 Billion and Regulators Are Worried By Steven Russolillo 比特币疯狂上涨的行情致使其他电子货币跃跃欲试 HONG KONG—Money raised from initial coin offerings has surged past $4 billion for the first time, even as regulators world-wide have escalated (升级) warnings about the new form of corporate funding. An initial coin offering, or ICO, is a method of corporate fundraising that circumvents traditional capital markets. Typically tech startups, many involved in the digital-currency sector, raise money from investors in exchange for newly created digital coins or tokens, which they can trade. （股票发行改为电子货币发行） An ICO is often described as being between a traditional initial public offering and crowdfunding（众筹）. ICOs have attracted celebrities, including Paris Hilton and boxer Floyd Mayweather Jr., who have marketed coin offerings on social media. But there are risks, and some regulators believe ICOs should be regulated like securities. Some ICOs back companies that don’t have active products or services. In 2017, ICO fundraising topped $4 billion, according to data provider Autonomous Research, up sharply from just $225 million in 2016. Proceeds have gone to ventures such as distributed（分布式） ledger（总账） technology, the system underpinning（支撑） bitcoin, and the Internet of Things, according to Autonomous. ICOs have surged in popularity along with the rapid increase in value of bitcoin, a digital currency that runs on a decentralized network of computers, as opposed to traditional fiat currencies which are controlled by central banks or governments. Bitcoin recently traded at about $16,500, according to research site CoinDesk, having surged from slightly less than $1,000 at the beginning of the year. On Wednesday, Federal Reserve Chairwoman Janet Yellen called bitcoin “a highly speculative asset” in what was likely her final press conference as central bank chief. The $4 billion milestone comes after Wall Street’s top regulator issued a warning about all the money that has flooded into bitcoin trading and cryptocurrency markets, including ICOs. “The world’s social media platforms and financial markets are abuzz about cryptocurrencies and initial coin offerings,” Securities and Exchange Commission Chairman Jay Clayton said in a statement earlier this week. “We are hearing the familiar refrain, ‘this time is different.’” Mr. Clayton’s alert came on the same day the SEC halted（中止） a $15 million ICO. The agency said the offering should have been conducted under the regulator’s rules for securities sales. Because it wasn’t, investors didn’t get the extensive disclosures that enable informed investment decisions. The U.S. isn’t the only one coming down hard on ICOs. China banned them in September, part of its broader crackdown（镇压） on cryptocurrencies. Regulators in Hong Kong and Singapore have also warned against ICOs, citing fraud concerns, money laundering risks and worries about terrorist financing. South Korean regulators have said they would ban ICOs, though it isn’t clear how they will enforce the ruling. Cryptocurrency trading has gotten so popular in South Korea that regulators this week held an emergency meeting to figure out how to curtail （缩减）widespread speculation in the market. Even so, ICO growth has shown few signs of slowing. And market participants are offering more advice on the best way for investors to participate and protect themselves in ICOs. The Fintech Association of Hong Kong, a nonprofit group, earlier this month published a guide, “Best Practices for Token Sales.” The paper aims to provide “general and practical guidance” for investors and companies engaging in ICOs, the organization said. “While the ICO frenzy（狂热） may calm down in 2018, especially in terms of the number of ICOs and the amounts raised, expect the industry to further institutionalize（制度化）, with the further development of best practices,” said Henri Arslanian, PwC’s China and Hong Kong leader for fintech and an adjunct associate professor at the University of Hong Kong. Paul Vigna and Dave Michaels contributed to this article. Write to Steven Russolillo at steven.russolillo@wsj.com