Researchers Urge Full Disclosure of Stablecoin Investment Risks
- However, the ICO is not governed by a public offering price or asset allocation and there are no institutional regulations regarding listing.
- If there is minimal disclosure of the typical investment risks of stablecoins, extreme optimism about Terra-Luna will not spread in the trading market.
- At the moment there is no regulation on illegal transactions such as unfailing trade in digital assets and insider trading.
Kim Gap-rae, a researcher at the Capital Markets Research Institute, spoke at the Global Investment Center in Yeouido, Seoul, on May 24 about “Current Issues and Key Issues of the Digital Asset Market.”
His main point is the fact that “the virtual asset market has evolved based on investor confidence by enacting the ‘Basic Law on Digital Assets.'”
The initial coin offering (ICO) is to raise the initial development funds of the investor and pay the coins in return for issuing new virtual assets. Certain criteria must be met before the ICO can issue coins in the early stages of the project.
However, the ICO is not governed by a public offering price or asset allocation and there is no i …