TEL AVIV, ISRAEL
Bancor Network Token lost over half its value since its ICO. An ICO is like an initial public offering, except the C stands for “coin.” ICOs work like Kickstarter campaigns for tech companies, with the advantages that low-level investors can get in on the ground level and anyone can cash in whenever they can find a buyer for their coins. On the down side, ICOs are highly susceptible to theft, fraud, and volatility—on top of being vulnerable to the black-market transactions digital currencies attract. After $7 million was stolen by hackers during CoinDash’s July ICO, the United States Securities and Exchange Commission issued warnings, and China banned the practice. Bancor was formed as an exchange for digital currencies, but analysts faulted the concept as half-baked, using algorithms more complicated than manual transactions and offering no advantages to digital coin markets. Some even called the venture a “planned failure.” Bancor set a record when it raised over $153 million in its June ICO with the support of billionaire Tim Draper.