How would you differentiate fraud from a legit ICO? What makes a ICO not fraudulent? It's hard to determine
Even so, it might take a long time before they start failing in large numbers and law enforcement starts taking action. Until then, a lot of money will be won and lost.
ICOs are the Wild West, with the added benefit that they’re totally intangible so you can’t even be stuck holding the bag.
But with laws at least I know that they met a base level of not ‘a cartoon mafia hiding under a table giggling at the idiots buying our scam’.
> Coin offerings generally happen without the involvement of financial institutions or regulators because investors pay for the coins using Bitcoin and other virtual currencies, which can be sent outside the traditional financial system.
Essentially it's a throwback to the days before any financial regulation existed.