Tuesday, 24 October 2017
On 01:21 by admin No comments

The
former stockbroker, who spent nearly two years in prison for fraud and
financial scams, says that the Initial Coin Offerings used to raise
money for cryptocurrencies are "far worse than anything I was ever
doing." His fears seem to stem from the way ICOs differ from the more
traditional IPO.
With
IPOs investors gain shares in whatever company they plough money into,
and profits can be easily shared. With ICOs, however, there is no
mechanism in place for distributing any profits that may be made,
profits are reliant on the value of a given cryptocurrency increasing
and, perhaps more worrying, ICOs are not regulated in the way IPOs are.
Aside
from the fact that some ICOs are out-and-out scams, many people believe
that the cryptocurrency bubble is just that -- a currently growing
bubble that will eventually pop, leading many people to lose out.
Speaking to the Financial Times, Belfort said:
It's the biggest scam ever, such a huge, gigantic scam that's going to blow up in so many people's faces. It's far worse than anything I was ever doing.Promoters are perpetuating a massive scam of the highest order on everyone. Probably 85 percent of people out there don't have bad intentions but the problem is, if 5 or 10pc are trying to scam you it's a fucking disaster.
Belfort
is far from being the first person to warn against the dangers of
investing in cryptocurrencies, and China has gone as far as banning
ICOs.
Subscribe to:
Post Comments (Atom)
Search
Featured post
27 good hacker documentary
In the eyes of most people, a group of hackers usually extremely boring nothing interesting people, and that if only the computer code in ...

0 comments:
Post a comment