CRYPTOCURRENCY ICOs IN MONGOLIA RISKS AND CHALLENGES
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Kulcsszavak: | Blockchain coin crypto asset cryptocurrency ICO Initial Coin Offering Mongolia token |
| Online Access: | http://dolgozattar.uni-bge.hu/44195 |
| Abstract: | At the end quarter of 2021, Mongolia's financial sector experienced a very uncommon incident that never happened previously. A company named "Inflation Hedging Coin (IHC)" announced its ICO (Initial Coin Offering) in September 2021 and successfully raised 10.5 million US dollars almost under a minute after the ICO opening. Immediately, this case attracted many fortune seekers and many other ICOs followed, offering their crypto coins. According to official sources, it is estimated that there have been 73 coins that raised funds. This sudden boom of cryptocurrency in Mongolia only within a year was tremendous compared to the sluggish development of the 30-year-old stock market of Mongolia. Some sources estimate the Mongolian crypto market capitalization to be equal to 53% of the entire capital market and 995% of the income of insurance companies. If we compare this amount with the key economic performance indicators, it equals 4.9% of the whole economy, 17.4% of savings in banks, 16.8% of foreign currency reserves, and 37% of total cash in circulation. This is signaling a very unhealthy process in the Mongolian financial sector. The aim of my research will be thoroughly studying the literature on ICOs and to point out the risks and challenges accompanying this phenomenon in Mongolia. |
|---|