By Nivine Richie
Start-ups may be able to raise new money using an ICO instead of an IPO. This new fund-raising method has its critics, including the SEC.
From The Hill (28 Aug 2017)
The Securities and Exchange Commission (SEC) on Monday issued a warning about investing in companies promising to raise capital by selling cryptocurrencies such as Bitcoin and Ethereum.
The agency told investors to be wary of buying stock in companies that tout “initial coin offerings” (ICOs), sales of units of valuable currencies run through electronic ledger systems.
As cryptocurrencies explode in popularity, accessibility, number and value, smaller companies and startups have used ICOs to build capital they’d struggle to win from venture capitalists and investment funds.
What are the benefits and risks of ICOs?
In your opinion, what does the future hold for ICOs?
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