Risk-Averse Investors Warn About the Potential Dangers of Funding an Initial Coin Offering (ICO)

Initial Coin Offerings (“ICOs”) have skyrocketed from the fringes of the online community into mainstream finance. An ICO is a new and innovative way companies raise capital from the public by offering their own cryptocurrency “coins” up for sale. The first sale is the Initial Coin Offering. In an ICO, coins are exchanged for traditional currencies like U.S. dollars or Euro or, more often, other virtual currencies like Bitcoin or Ether.

Companies have used ICOs as a capitalization scheme, as releasing a cryptocurrency is a fast way to get money and earn legitimacy for a new coin. Coins are usually marketed online and distributed using a blockchain ledger.

As a result, pretty much anyone with an internet connection can participate in an ICO, and the multitude of new cryptocurrencies has attracted a lot of new, small-cap investors to the virtual exchan...

Read Full Press Release here: https://bitnewsbot.com/risk-averse-investors-warn-potential-dangers-funding-initial-coin-offering-ico/