WARNING ON ICO
The Securities and Exchange Commission, Thailand (SEC Thailand) has urged potential investors in an initial coin offerings (ICO) to better understand the benefits and risks associated with the ICO, according to the SEC Thailand release yesterday.
In addition to the general risks faced by startups, investors will be exposed to heightened risks of price volatility, inadequate liquidity, cyber security, as well as potential fraud and scam. Given ICO's cross-border nature, legal protection and recourse for investors may be limited or not applicable in most cases.
ICO refers to a digital way of raising funds from the public. In an ICO process, ICO issuer will offer digital tokens in exchange for cryptocurrency, such as Bitcoin or Ether.
