ICOs, or Initial Coin Offerings, have become a popular way for cryptocurrencies to raise funds from the public. However, they have also become an easy way to prey on the vulnerable, and the financial regulator recently warned customers about what it calls “these very high risk, speculative investments”. It warns that there’s little consumer protection and high potential for fraud, as well as high volatility. Some ICOs are regulated by the FCA, but this is on a case-by-case basis, depending on how they are structured.
As the FCA says, you should fully research any ICO before handing over your money. “You should only invest in an ICO project if you are an experienced investor, confident in the quality of the ICO project itself,” a spokesman says. Alternatively, consider investing or trading with a regulated provider.
Of course. do not arbitrarily invest in ico that you do not know about the project. because not all ico are good and promising. most ico scams only want to get funds from the public and leave them just like that. Therefore, before choosing ico, make sure we get complete information from the project to minimize losses. find out who their team is, what their project is, don't forget to read their whitepaper to find out their project details.
