Tezos, which raised $232 million in an initial coin offering in June, plummeted on derivative exchanges before the product — a blockchain for digital currency — even launched, Bloomberg reports. Derivatives on Tezos tokens fell as much as 31%, according to exchange HitBTC, Bloomberg says. Ethereum, a platform used to launch many ICOs, fell 2% after the news, per Coindesk.
Why it matters: As Bloomberg puts it, "Experts have warned for months about the risks and lack of transparency in ICOs, which have raked in $3 billion this year despite offering little protection or guarantees to investors. Whether Tezos recovers to deliver value to investors could go a long way to shaping how authorities regulate ICOs."