IPOs came about during the time when dedicated scammers preferred premining their dozens of scamcoins. People caught on that premining was usually a scam, so the scammers began using a novel method whereby they created an IPO for their coin. Then they could (and can) just collect the money and leave. They don't even have to make a coin, really. Thankfully, the majority has gotten more skeptical about new coins. So now one of the numerous exchanges takes a cut of the action and the scammers are happy again. What also helps is that a significant amount of altcoin traders are willing to support coins that they know are scams as long as they're likely to make some BTC in it, and so exchange-facilitated IPOs are very popular.
Basically, it's an added layer of protection against the laziest scammers.
Topic: Why is it safer to buy ICOs from an exchange rather than paying the dev? (Read 699 times)
October 05, 2014, 07:33:46 PM
October 05, 2014, 07:02:55 PM
Does it just insure we get the coins immediately?
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