Different from “initial coin offerings” (ICO’s), this fundraising strategy calls for buyers to get digital tokens from both startups and exchanges, “kind of like hosting a fundraiser through Kickstarter as opposed to a personal bake sale.” However, some are worried the exchanges, which are supposed to act as gatekeepers, will allow shady companies to make offerings simply to collect the commissions and fees for the transactions, it continues.
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SEC Warns Investors to Watch Out for 'IEO' Scams
Regulators are warning about a new twist into crypto-fundraising schemes and are cautioning investors to be weary of “initial exchange offerings” or IEO’s. So reads an opinion piece from Quartz.
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