Topic: US SEC: Initial Exchange Offerings (IEOs) – Investor Alert (Read 101 times)

I don't know, but it's going to be very difficult of US citizens to invest in any of them. And I don't know how US citizens in this community is investing or if they completely stop at all.

Thanks for confirming my belief that US citizens are wiling to take the risks associated with IEO/ICO. I always thought that they do, despite the fact that SEC is pretty much tight on them. Perhaps it is one reason that Binance put their US version because they know that US is a big market for everything related dto crypto. I guess non US citizens really needs to be aware that investing on them is really a risk.

Several of my friends that actively trade cryptocurrencies in the United States still invest in IEOs despite some of the risks associated with this that are addressed pretty well in this SEC alert. There's still plenty of interest in cryptocurrencies as a whole in the U.S despite the tightening regulations that exchanges, traders and investers have to deal with, and even though I support cryptocurrencies and crypto fundraisers like IEOs and ICOs despite the fact that many of them do not succeed, this alert seems pretty fair. A lot of people don't do much investigating and/or research into IEOs and ICOs and crypto investments as a whole, and these alerts can open the eyes of such people, though I imagine they also do turn some people away from investing in crypto.

Investor Alerts and Bulletins
Initial Exchange Offerings (IEOs) – Investor Alert

Jan. 14, 2020

The SEC’s Office of Investor Education and Advocacy is issuing this alert to urge investors to use caution before investing in so-called “initial exchange offerings” through online trading platforms.

Initial exchange offerings (IEOs) are a recent development in the rapidly evolving digital asset space.  IEOs are similar to initial coin offerings (ICOs) in that they are initial offerings of digital assets (e.g., coins or tokens) to raise capital.  However, IEOs are being touted as an innovation on ICOs because they are offered directly by online trading platforms on behalf of companies—usually for a fee—to provide immediate trading opportunities for the digital assets.  These online trading platforms, which are typically not registered with the SEC and which may improperly refer to themselves as “exchanges,” may also claim to perform due diligence or other quality assessments of the IEOs.

Be cautious if considering an investment in an IEO.  Claims of new technologies and financial products, such as those associated with digital asset offerings, and claims that IEOs are vetted by trading platforms, can be used improperly to entice investors with the false promise of high returns in a new investment space.  As described below, IEOs may be conducted in violation of the federal securities laws and lack many of the investor protections of registered and exempt securities offerings.