Research On Investor Fraud In ICO Information Disclosure Of Blockchain Projects

Nowadays,the blockchain technology is drawing more and more attention from people.There are many blockchain projects have been produced.As a new crowd-funding method relying on blockchain technology,ICO has also been widely used by blockchain projects.However,due to the lack of a comprehensive regulatory system and information disclosure system,many blockchain projects will have cheating acts or even be deceptive ones,which have brought huge losses to investors and negative impacts to issuers.This paper selects the "OneThing Cloud" project of Xunlei Company to analyze how cheating acts happened in information disclosure during the ICO process including preparing period,funding period and operating period,and the influence of those cheating acts.The results are as follow: first,there are a number of cheating acts happened in information disclosure during the ICO process.Second,the cheating acts caused sharp ups and downs in the value of its token "Wanke Coin(LinkToken)",and brought huge losses to the project investors.Third,cheating acts of the project caused abnormal changes of stock price,which brought losses to the company's investors.Fourth,the cheating acts also brought negative effects to the company and its operating situation.To sum up,a company,like Xunlei Company,which really wants to develop blockchain project well,should fully consider the risk and uncertainty of the project when producing it.Only by avoiding speculative decisions,getting familiar with local policies,consolidating underlying technologies and improving information disclosure,can it develop a blockchain project of high quality and power the company's growth.