AFM: ICO is "Dangerous cocktail"

Netherlands Financial Markets Authority AFM reported on high risks associated with ICO
14 November 2017   1122

Dutch financial regulator warned investors on high risks of initial coin offering campaigns.

The Netherlands Authority for Financial Markets (AFM) – the country's equivalent to the U.S. Securities and Exchange Commission –released a statement today outlining the risks it sees in the market for new cryptocurrencies, including those issued through the crowdsale model.

Although the AFM sees the possibilities of blockchain technology for financial services, it points to the high risks of ICOs in the current hype. The high risk of scams and loss of intake combined with the hype around ICOs at the moment is a dangerous cocktail.
 

Merel van Vroonhoven

Chairman, AFM

Also, the AFM listed main ICO risks:

  • The anonymous and transboundary nature of blockchain technology makes it possible to use an improved scheme of the traditional pyramid, which is difficult to recognize.
  • The promise of profitability is overstated, while ICO startups are projects at an early stage of development.
  • Private investors do not have enough experience and knowledge to assess the investment attractiveness.
  • ICO-projects do not provide exhaustive information for risk assessment.
  • Many projects have speculative features and are subject to manipulation.
  • They are an ideal way of laundering funds received illegally.

 

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Tezos to Launch Mainnet

On the threshold of the launch of the main network Tezos token demonstrated impressive growth
18 September 2018   148

After a sufficiently long period of preparation and the need to resolve legal issues, developers of the Tezos blockchain protocol announced the launch of the main project's network.

Tezos is positioned as a network protocol for secure and time-ready smart contract systems. According to the founders of the project, the platform focuses on such fundamental aspects as transparency, security and governance through consensus.

It is noteworthy that the launch of a viable version of the software was made at the end of June. After that, in the listings of several exchanges, tokens of the Tezos project appeared under the ticker XTZ.

However, only last weekend the developers announced the completion of the experimental mode and leave the beta version.

In the summer of last year, Tezos conducted a crowdsfunding campaign, collecting a record $ 230 million at that time. Soon the project, however, was under a storm of collective lawsuits, which also caused a long delay in launching the platform.

On the threshold of the launch of the main network Tezos token demonstrated impressive growth - over the past day the price of XTZ has increased by more than 5%, over a one-week period this figure was more than 32%. At the time of publication, the average price of XTZ, according to CoinMarketCap, was $ 1.63 (0.00025835 BTC).