I started noticing lately a lot of crypto meme tokens being generated and sold online in a variety of ways. Basically everyone can generate ERC20 BNB based tokens, sell them in a pre-sale, and put them on a decentralized exchange. I was wondering how is that even legal, having in mind that crpyto ICO's are actually regulated and you can't actually buy a token from a serious company in a ICO unless you pass KYC details. So what is that all about ?
1 Answer
I doubt most of the creators are considering legality when they launch those. On the other hand, some ICOs have a bunch of lawyers behind them and everything is legal (at least in the target countries), but that kind of preparation takes a lot of money and time.
So, most of the ICOs are probably launched simply because it's easy to launch one, and hoping to get some easy money. Only afterwards people realize that they should probably considers legality and taxation aspects as well.
answered May 25, 2021 at 4:50
-
1That's something what I've thought as well...but then again, could it be also that because these token are obtained by "swapping" existing crypto(BNB), it's not under anyone's jurisdiction, since there's no fiat involvement ?– ZedCommented May 25, 2021 at 10:04
-