This failure to keep track of the value of underlying financial instruments were the leading contributing factor to the 2008 subprime mortgage crisis.
The difference with ICOs is that they have moved a new kind of derivative from the wholesale financial sector, to the retail sector and retail investors.
The fluctuations in crypto-currencies in January have shown considerable volatility following the Asian clampdown on crypto-currencies and exchanges. If anything, this market volatility has shown that these new financial products are good for speculation by professional investors who can afford to lose some of their money, but are not good investments for most Main Street investors. If there is anything good which has come from the January volatility, it is that it has forced retail investors to take a second look at putting their life savings into crypto-currencies and ICOs.
Caveat emptor.
