DAO was criticized heavily since its inception as it had numerous security risks which were not addressed as there was no one in charge of the organization.By May of 2016, DAO was able to get its hands on about 14% of the ETH tokens that were issued at the time, which was a lot considering that it was launched only a month prior. This did not last long as only a month later, the DAO was attacked by hackers who got their hands on 3.6 million ETH tokens which were worth $50 million at the time. This caused great turmoil as no one knew what to do, and there was no one there to enforce a particular decision on whether they should tackle the problem or disband the organization. There was also a concern about the value of ether, which could be influenced by investors liquidating their Ethereum.This was followed by Exchanges de-listing the DAO token in September of 2016. The DAO was also vague about whether it was selling securities which was later confirmed in July of 2017 by the SEC(Securities and Exchange Commission) that the DAO was indeed selling securities in the form of tokens on the Ethereum blockchain, which violated portions of US securities law. Not to mention the violation of the trust of investors who had funded this entire project.The obvious problem was a lack of regulation that failed to ensure that appropriate security measures were taken and also a lack of faith in the project. Accountability is also important especially when starting a new company, though decentralization is great, it is crucial to have people that are equally committed and working for the betterment of the organization. In this sense, some degree of regulation is required.