NBers Warned About Cryptocurrency Investments

Posted on Friday, October 12, 2018 13:11 PM

The Financial and Consumer Services Commission of New Brunswick is warning about the risks of investing in cryptocurrency assets.

FCNB spokesperson Erin King says initial coin offerings or ICO's have become an emerging form of fundraising in the tech world.

"They are typically used by start-ups to sell digital tokens or coins to finance their ventures.  However, the tokens that are often used have value only inside the proposed project," she says.

But if the project is never realized by the venture, King notes the tokens you bought as an investment are worth nothing.

For that reason, she says ICO's are very risky and become a fertile ground for fraud.

King adds scam artists have been setting up fake ICO websites in an effort to lure potential investors.

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