ICOs Are Where the Frauds Will Take Place Claims Money Manager Josh Brown

ICOs Are Where the Frauds Will Take Place Claims Money Manager Josh Brown

Josh Brown had harsh words on initial cryptocurrency offerings, also known as ICOs. According to him, this is the niche where frauds will be held.

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Josh Brown had harsh words on initial cryptocurrency offerings, also known as ICOs. According to him, this is the niche where frauds will be held.

Josh Brown is a money manager who turned out to be a successful bitcoin trader. In his blog, he claims the initial offers of bitcoin will allow fraud to take place. He wrote on his reformed broker blog where he claimed that he strongly believes the initial offers will allow room for fraud to take place. He was talking to Coindesk where he gave several examples on how the fraud will be committed while dealing with the initial offers. He cited the incredulity which was shared by west loop partners, general partner Jeff Carter who also shared in his new blog post.

Jeff wrote that a friend of him from Chicago floor transfer came to realize how the fraud would be performed after analyzing different factors. The different path and factors he took in mind led him to the same conclusion – that fraud would be performed during the ICOs.

He described ICOs derived tokes as a form of unregistered securities which can allow fraud. Unlike cryptocurrencies which employ high levels of encryption, the tokens would be used in only selected apps or platforms which can lower the privacy involved in the cryptocurrency.

He described the model of selling the tokens with a business which deals with walrus sex. He said: “Unlike traditional securities sales, there is no regulation here. I can say that I’m starting a walrus sex ranch and that the digital token I am using to raise the capital will be good for two hours of sex with one of my walruses,” he wrote. “You buy five of my tokens, because you’ve always wanted to make love to a walrus, and this gives you the right to ten hours of unadulterated bliss with my product once I’ve raised enough from maniacs like you to go into operation.”

Or said otherwords, Jeff claims that he can raise the amount from selling the tokens while targeting people who are interested in his services. But, after he has acquired enough capital, he can lower the value of his services.

The comments of the manager came at a time when securities regulators from across the globe are busy looking for ways they can regulate the ICOs model. Many securities regulators have warned against the use of tokens because they constitute securities offerings but many investors are taking advantage of them. According to coindesk ICO tracker, the tokens have generated more than $2 billion in investment. Brown concludes that people should not be skeptical about them.

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