Initial Coin Offerings (ICOs): Economics and Regulation

42 Pages Posted: 5 Mar 2019

See all articles by Lars Klöhn

Lars Klöhn

Humboldt University of Berlin - Faculty of Law

Nicolas Parhofer

Humboldt University of Berlin - Faculty of Law; Harvard Law School

Daniel Resas

Schnittker Möllmann Partners

Date Written: November 26, 2018

Abstract

Initial Coin Offerings (or Token Sales) are currently the “hottest game in town” in capital markets law. The discussion revolves around two core questions: Do token sales fall within the scope of existing EU capital markets legislation and do they warrant specific regulation? We will try to answer the first question while building a foundation for discussing the second question. To provide a complete picture, we examine the key economics of ICO-financed projects, their up- and downsides for investors and draw a comparison to regulatory activities both in the US and Switzerland.

Keywords: Initial Coin Offerings, ICOs, Token Sale, Blockchain, Ethereum, Cryptocurrencies, EU Securities Law, Financial Instrument, Investment Contract

JEL Classification: K22, G02, G20

Suggested Citation

Klöhn, Lars and Parhofer, Nicolas and Resas, Daniel, Initial Coin Offerings (ICOs): Economics and Regulation (November 26, 2018). Available at SSRN: https://ssrn.com/abstract=3290882 or http://dx.doi.org/10.2139/ssrn.3290882

Lars Klöhn

Humboldt University of Berlin - Faculty of Law ( email )

Unter den Linden 6
Berlin, D-10099
Germany

HOME PAGE: http://www.rewi.hu-berlin.de/en/lf/ls/kln

Nicolas Parhofer (Contact Author)

Humboldt University of Berlin - Faculty of Law ( email )

Unter den Linden 6
Berlin, D-10099
Germany

Harvard Law School ( email )

1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States

Daniel Resas

Schnittker Möllmann Partners ( email )

Hardenbergstr. 27
Berlin, 10623
Germany

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