Compared to Initial Public Offerings (IPOs) and conventional loans, Initial Coin Offerings (ICOs) are sales of promises of cryptocurrency appreciation. However, regulatory uncertainties continue to prohibit successful widespread adoption. This paper examines ICOs with varying levels of success, including Mastercoin (now Omni) and Kin, as well as fraudulent ICOs, like REcoin and OneCoin. The discussion of the ICO market focuses on the "regulation paradox," examining some of the inherent contradictions between regulatory actions and values that differentiate ICO schemes from other investment instruments, and therefore questioning the capability of regulations to enhance investor protection mechanisms without undermining the fundamental value of cryptocurrencies and ICOs as a viable funding structure.

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