Delco is a US – based business that created an iPhone application (App) user to review restaurants. The company initiated an initial coin offering (ICO) to sell digital tokens to raise $15 million in capital to invest in improving the App. The company advertised and promoted the offering on the website, in a white paper and on social media channels and messages boards, such as Twitter and Facebook, particularly in focused aimed at those interested in investing in digital assets. In the communication about the offering, Delco said it would use the proceeds to create an “ecosystem” in which the company, its App users, restaurants, and others could use the tokens to buy and sell goods and services. Delco explained that it expects the tokens to increase in value as a result of company’s efforts. In addition, increased participation in the ecosystem and the use or “burning” of tokens would also help increase the value of tokens. Finally, Delco stated that it intended for the tokens to trade on a secondary market. Delco’s ICO was acceptable or unacceptable. Justify your answer with explanation.

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