OECD: ICOs are Useful, but no a “Mainstream”
The Organisation for Economic Co-operation and Development believes that ICO can be a useful tool for raising money. It is especially true for small and medium businesses. But crypto crowdfunding lacks maturity and regulation. According to the latest OECD report, ICO can really help small and medium-sized enterprises in raising investments for their activities. But because of the general immaturity of the industry, it is quite difficult to determine the value of a token of a company.
Moreover, in most countries, the ICO market lacks legislative regulation. Because of this, companies are less likely to trust crypto crowdfunding. On the other hand, investors are at risk, because their rights are unprotected by law, as on traditional financial markets.
The OECD concluded that because of these problems, the ICO could not become a widespread tool for raising investments, especially for companies that do not work in the crypto industry.