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.
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, mate. Especially these days, the chance and rate of success of many ICOs are hanging by a thread, it would be more comforting, if not, a little safer to research and get to know everyday that relates to any ICO that you are eyeing as an investor. It would be too difficult to just wing it and hope that everything will be alright because that's clearly not how this market works. Every investment and venture here are risky at best, and if you won't do your homework to study and get to know them to be ready, then there will be a higher for your to fail, which in turn, would mean the loss of your capital.
