Nasdaq CEO: ICO — a trap for inexperienced investors

The head of Nasdaq adena Friedman said that the ICO carry serious risks for inexperienced investors. The main disadvantages of this type of crowdfunding, she attributed the lack of transparency and regulation of new start-UPS. It is reported by Cointelegraph.

ICO projects lack of intervention by regulators

Adena Friedman expressed his concerns on the Future of Fintech conference in new York. The head of Nasdaq is concerned about the carelessness of individual investors when investing its money in new projects in the blockchain.

People Willy-nilly give their company money, which does not give anything in return except vague promises. To me it sounds like a normal manipulation of inexperienced investors.

Friedman mentioned that ICO has attracted only beginners financiers, who do not have experience of investing in traditional markets. At a time when the SEC requires full information support from new firms during IPO, ICO still remain outside the purview of regulatory authorities.

In ICO you will not find any guarantees, almost all of them 100 percent live at the expense of individual investors. I am concerned that companies collect huge capital in the absence of transparency, verifiability and accountability of the relevant authorities.

Friedman also endorsed the recent decision of the SEC to toughen measures to control the ICO. Earlier, John McAfee refused to advertise ICO in your Twitter account because of threats of litigation with the SEC. I hope courses will be affected slightly.

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