Initial Coin Offerings (ICOs) have emerged as a fresh method for fundraising, particularly for startups and small and medium-sized enterprises. As a result, their popularity soared between 2017-18, which attracted the attention of many — namely scammers.
With that in mind the US Federal Bureau of Investigation (FBI) has shared the key features around scam Initial Coin Offerings (ICOs) — to warn investors. According to the agency, the main strategies of fraudulent schemes include misrepresentations regarding:
- Its leaders professional experience;
- The industry’s interest in the ICO;
- The token’s probable rate of return.
“Like any investment product, rates of return can never be guaranteed and if it sounds too good to be true, it probably is.” — Was shared in the interview.
The FBI also remembered that investments in the crypto sector are always involved in significant risk — and advised investors potentially interested in an ICO to carry out due diligence concerning the schemes and the individuals behind it.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news