Delco is a US - based business that created an iPhone application (App) user to review

restaurants. The company initiated an initial coin offering (IC) 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.