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.
True. I think this is why ICO has evolved into STO's and IEO's for the security of the investors. No one wants to be a part of that year when crypto was seen as scam because of all those ICO projects. That's why I'm kind of picky these days and I always do as what the topic says, DYOR before investing. One factor I learned is that I checked if they were able to have a successful private round like this cryptocollectible project that has
sold out their private sales. That alone can also give me the confidence in entering the project.