Russian ICOs attracted a total of $300 million last year but half of the funds went to financial pyramids, according to the Russian Association of Cryptocurrencies and Blockchain. The organization that represents the crypto community in the country is now working on an ICO standard to help investors distinguish real projects from fraudulent schemes. Russian ICOs account for 10% of global volume.
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Russia Expects Up To $1.5 Billion from Coin Offerings
At least $150 million dollars raised by Russian ICOs in 2017 were collected by pyramids, RACIB revealed, while announcing a plan to fight financial fraud in token sales. The initial coin offerings with Russian participation account for 10% of the global market, as news.Bitcoin.com previously reported. The association expects Russian projects to attract $1-1.5 billion USD in 2018.
This is some serious money and the Russian crypto community believes the country should take advantage of it. Two major factors can influence negatively these investments and RACIB is actively working on both fronts. Excessive regulation may force Russian companies to seek jurisdictions with a more favorable climate for crypto business. The association already warned about that in a report addressed to President Putin. RACIB is also preparing an “ICO standard” to help investors distinguish real ICOs from fraudulent schemes.
A startup conducting a coin offering will be judged by several criteria, including the credibility of its team members, Izvestia reported. RACIB will verify if the company has a website with information about previous projects. The association will check for a white paper and a roadmap for the ICO. Startups will be expected to announce a minimum rate of return of the investments.
The ICO
