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August 15, 2018

ICOs are a colossal risk to retail investor due to lack of oversight: Nasdaq CEO

CNBC reports that Nasdaq CEO Adena Friedman reiterates that initial coin offering(ICO) is a serious risk to the retail investor.
Friedman suggested, at the Future of Fintech conference in New York,that ICOs are ‘’real concern’’ and they may dupe retail investors. Friedman accounted this for lack of public information, including transparency, regulation, and accountability.
“To make it no rules at all, when companies can just willy-nilly take people’s money and offer no information at all, with no governance, that sounds to me like you’re taking advantage of people.”
Friedman stressed that the defrauded investors are newcomers who just don’t have the required information. He further stated that unlike IPO that comes under the ambit of SEC Securities and Exchange Commission, the ICO processes have ‘’almost no oversight’’
“In ICO space none of that is available, and it’s all being bought by retail. I have a real concern about lack of transparency, oversight, and accountability that these companies have as they’re going out to raise capital through an ICO.”
Friedman also said that she empathized with the SEC’S claim that ICOs are security offering, wherein she supported SEC
Lately, CBOE Global Market President Chris Concannon said that twofold regulation is in pipeline for ICOs, in case the SEC declares ICOs as unregistered securities. The first “wave” would come when a slew of ICO projects would be deemed in violation of existing securities laws and investors’ holdings would be “rendered valueless.” Subsequently, said investors would file class actions lawsuits against the ICO operators.
Crypto evangelist John McAfee announced on June 19 that he might cease to promote ICOs considering threats from SEC. McAfee, who revealed his second run for president in early June, claimed that he charges $105,000 per tweet to promote cryptocurrency projects and products

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