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How would you differentiate fraud from a legit ICO? What makes a ICO not fraudulent? It's hard to determine
by giacaglia 9y ago
How would you differentiate fraud from a legit ICO? What makes a ICO not fraudulent? It's hard to determine
- brndnmtthws 9y agoThe same can be said for a lot of investments, there's nothing about ICOs that makes this unique aside from the fact that most people don't understand computers.
- MBCook 9y agoExcept we have entire sets of laws and systems to try to control and expose the risk of other investments. ICOs are the Wild West, with the added benefit that they’re totally intangible so you can’t even be stuck holding the bag.
- deleted 9y ago[deleted]
- brndnmtthws 9y agoAh, yes, and the government knows best, right? If there's a law, then it must be safe and good for everyone!
- MBCook 9y agoNo, clearly investments are not safe. That’s why those disclaimers exist on any investment commercial. But with laws at least I know that they met a base level of not ‘a cartoon mafia hiding under a table giggling at the idiots buying our scam’.
- emodendroket 9y agoWell, the obvious difference (IMO) appears in the article: > Coin offerings generally happen without the involvement of financial institutions or regulators because investors pay for the coins using Bitcoin and other virtual currencies, which can be sent outside the traditional financial system. Essentially it's a throwback to the days before any financial regulation existed.
- modeless 9y agoIt's a subjective judgement, and not really useful. Some more useful questions are: which are illegal, and which will fail? The answer to both of these questions is "almost all of them". Even so, it might take a long time before they start failing in large numbers and law enforcement starts taking action. Until then, a lot of money will be won and lost.
- lowglow 9y agoUse the same judgement any VC would when approaching what to purchase. Every inch of doubt is where you're gambling.