FAST FIVE: Crypto Startups Have Found A New Way To Separate Gullible Investors From Their Money
The old truism that a 'sucker is born every minute' has never been more apt than during the crypto era, when weeks-old 'companies' with little more than an incomprehensible white paper and an abundance of bluster managed to raise billions of dollars from crowds of wannabes hoping they might be about to cash in on the next bitcoin.
But with the SEC breathing down their necks, many in the crypto world have turned to an innovative solution: Rejigger the acronym, and suddenly, what you're doing is legal.
And with the price of bitcoin once again on the rise (the ultimate barometer of interest in crypto), that figure is sure to climb.
Critics of the deals argue the new structure resolves none of the inherent flaws of the old structure (vulnerability to hacks and – oh yeah – outright fraud, to name a few).
Binance, one of the most popular crypto exchanges, has emerged as a primary backer of IEOs.