Germany’s top finance regulator has issued an investor warning on initial coin offerings (ICOs), becoming the latest markets watchdog to comment on the blockchain use case.
The Federal Financial Supervisory Authority (BaFin) said today that investors should be wary of the “numerous risks” involved in token sales, including “the possibility of losing their investment completely.” The agency added that the funding model – through which blockchain-based tokens can be sold and distributed in an effort to bootstrap a new network – is “attracting fraudsters” who may misrepresent their efforts to prospective backers.
BaFin stated in the release: […]
Read Full: Germany’s Securities Regulator Warns ICOs Pose ‘Numerous Risks’
