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 theres 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.
I wonder how big investors on the market have been very successful while they have other stuffs to spend their time with. Are they hiring some financial adviser that can remind them which coin is good to invest in? Or are they just very talented enough to handle the market on their own and make huge profit with their investment?