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This step makes BaFin the last market watchdog to issue a warning about ICOs.
In a statement, BaFin warned investors about the various risks associated with ICOs and sales of tokens.
Among the risks is the opportunity to lose all investments. The agency also warned that the ICO as a financing model could "attract fraudsters" who could distort their projects to potential investors.
Although BaFin did not introduce any new requirements or recommendations to the organizers of the ICO in its last statement, it announced that a more comprehensive guide for investors will be issue on November 15.
The regulator also warned that before they decide to take part in an ICO, consumers should make sure that they fully understand the benefits, as well as the risks of the investment or project. It also added that taking the necessary measures against ISOs can lead to possible losses for investors in the sales of tokens, which prove to be fraudulent in nature.
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