AFM: ICO is "Dangerous cocktail"

Netherlands Financial Markets Authority AFM reported on high risks associated with ICO
14 November 2017   1809

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.

 

Round 1 of TOP Network IEO Ended in 7 sec

Initial exchange offering took place at Huobi Prime platform
26 March 2019   73

The initial exchange placement (IEO) of the TOP Network project on the Huobi Prime platform that started today attracted no less attention than the similar campaigns on the Binance Launchpad. This is evidenced by the speed with which all the tokens allocated for the first round were purchased.

A number of investors in social networks reported technical problems that prevented the purchase of tokens, which, as in the case of the Binance Launchpad, are likely to be caused by an excessive load on the stock exchange infrastructure during the crowdsale.

The next round starts at 3/26 21:30 UTC+8, despite the fact that users did not use the 20 minutes set aside for trading, TOP Network reports.

For the two following rounds, 450,000,000 TOP and 750,000,000 TOP were allocated, respectively.