Date: 13th November 2017
The amount of funds raised through cryptocurrencies is 30 times higher in 2017 than in 2016. This evolution did not escape ESMA’s attention, which is now warning investors of the risk of losing ‘all of their invested capital’ when investing in Initial Coin Offerings (ICOs).
ESMA warns that ICOs are ‘very risky and highly speculative investments’, because the ‘coin or token is typically extremely volatile and investors may not be able to redeem them for a prolonged period’.