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.
Nice post as it somehow serves as a reminder for all the crypto enthusiasts, investors and traders to always 'dyor' and to be cauteous and be aware of the project that you participate with. But risk will always be part of the game in any business venture that we intend to do or join. Knowledge with what you wanted to do will definitely lessen the risk though so we better be equip with right knowledge, skills, strategy and understanding about cryptocurrency and how it work.