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Author: Admin | 2025-04-28
Your research on what you’re investing in, especially by reading any announcements and white papers for ICOs. Wait, what’s an ICO?An ICO is either a hip, sexy new way for entrepreneurs to bypass VCs and raise money from the people, or it’s the biggest opportunity for internet scammers in years. Maybe it’s both! ICO stands for “initial coin offering,” and at its core, it’s a fund-raising drive, almost like a Kickstarter. People financially back a project — usually a business, like a cloud-storage network called Filecoin — by buying “tokens” (essentially in-house cryptocurrency) that can generally be exchanged for the goods that will eventually be offered by the project. In the case of Filecoin, for example, you can exchange your filecoins for storage — or you can sell them on a cryptocurrency exchange, like you might bitcoin. (This has been compared to raising money for an airline by selling frequent-flier miles.) If that sounds financially risky — and legally dubious — that’s because it is. A number of ICOs are scams, such as the Diamond Reserve Club, which falsely claimed to be backed by real diamonds. Participants are increasingly getting calls from the SEC, which began filing ICO fraud charges this year. Whoa, my bitcoin went up 20 percent. How can I cash out?Had enough of the roller coaster, huh? If you want to cash a small amount — three figures, say — in an exchange like Coinbase, it’s easy to use the app to sell and cash out to
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