Does the Fall of $158M Crypto ICO Show Necessity of Strict Regulation?

Recently, Sirin Labs, an initial coin offering (ICO) project that raised $158 million during the bull market of 2017, made the headlines for its controversial pivot from a hardware-based business model to supplying software to mobile phone manufacturers.

According to a report released by Bloomberg, nearly a year since the ICO, the company has not been able to generate any profit and its mobile phone called “Finney” was met with underwhelming demand from the market.

The project is now facing a serious funding crunch and its capital is set to run out within 6 to 12 months.

Is Strict Regulation Required?

Last year, the project secured a mega-round from investors in the public cryptocurrency market to develop a mobile phone that uses cryptocurrencies as its native currency and allows users to trade and utilize digital assets.

The vague business model of the company set out to compete against giants like Samsung, Apple, and Huawei in a highly competitive market.

At…