Beware These Key Indicators Of A Fraudulent ICO

An initial coin offering (ICO) is a method of raising capital for a blockchain or cyptocurrency business in exchange for a digital coin or token which ordinarily has no correlation to ownership of the business. Because this capital raising method is not caught under the definition of securities in most jurisdictions, they are not subject to existing regulations and laws. Accordingly, the rise in ICOs has also attracted a rise in fraudulent activities in this space.

ICOs are usually marketed on the predication that the coin or token can be used or give access to the platform created by the underlying business, and/or the correlating value of the coin or token in fiat currency (i.e. legal tender) will increase as the popularity and use of the platform increases. This increase in underlying value is what has caused a frenzy of speculation in cryptocurrencies and people should be reminded that the underlying purpose of such coin or token not be overlooked.