White papers have been known to make for unusually interesting reading. But in this case, truth may be more sinister than fiction.
A study of initial coin offerings by the University of Pennsylvania Law School has found many of those offering ICOs “failed” to provide protection against insider trading or even stick to their white paper promises, Cointelegraph reports.
The study looked at white papers and other contract-like documents for the 50 top-grossing ICOs of 2017. “We then analyze how such projects’ software code reflected (or failed to reflect) their contractual promises,” according to the study’s abstract. “Our inquiry reveals that many ICOs failed even to promise that they would protect investors against insider self-dealing. Fewer still manifested such contracts in code.”
In addition, “a significant fraction of issuers retained centralized control through previously undisclosed code permitting modification of the entities’ governing structures.” Read more here.