The Initial Coin Offering (ICO) is one of the most popular ways to fund the development of cryptocurrencies by selling cryptocurrency to investors in the form of tokens. However, they also pose significant risks for investors. Several examples exist of fraudulent ICOs in which investors are given false or misleading information and promise high returns. This kind of fraud is facilitated by the international nature of blockchain technology allowing investors from all over the world to participate.
ICOs also present a significant risk due to their openness to inexperienced parties. Many people underestimate the knowledge and experience required to safely invest in an ICO which leads to them making poor decisions based on incomplete information. Without an advisor to guide these investments, it is easy to become trapped in projects of very little value.
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