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19 February
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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.

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