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.
This should be the standard requirement for every peoples in cryptocurrency.
If we don't do our research prior investing in ICO, then we may getting scammed by fraudster.
Nowadays peoples prefer to investing in IEO than ICO, because there were many scam projects.
Often times it is peoples own fault for being scammed. Their greed takes control of their brain. You can't blame ICO for that. They willingly hand over their money and some even hand over personal details along with it.
How ridiculous is that? There many decent projects the thing is people lose momentum and give up on them.