Former broker Jordan Belfort criticized the modern Initial Coin Offering and crypto-currencies

October 24, 2017 2:07 pmComments Off on Former broker Jordan Belfort criticized the modern Initial Coin Offering and crypto-currenciesViews: 122

Jordan Belfort brokerThe former broker Jordan Belfort, who has inspired the movie for The Wolf of Wall Street, has criticized the modern Initial Coin Offering (ICO) of crypto-currencies, defining it as “the biggest trick in history” that will “burst into people’s faces”.

His warning comes amid a wave of Initial Coin Offering (ICO), which attracts money online by selling digital tokens to investors in exchange for crypto-currencies like Bitcoin and Ethereum. Since the beginning of this year were organized 202 ICO, which have attracted more than 3 billion USD. The vast majority of them envisage improving trading and investing in digital currencies.

Jordan Belfort makes a parallel between the so-called “blind financing” in the 1970s and 1980s, whereby companies raise funds from investors without specifying what money will be used for. In many similar endeavors, funds are sinking without making an investment, but not before brokers get large commissions.

“The ICO organizers are committing a huge fraud of the highest order to all”, said the formed broker. “Probably 85% of people do not have bad intentions, but there is a problem if 5 or 10% try to deceive you, then it becomes a disaster”, added he.

Launching companies claim that ICO funding is a legitimate fundraiser that is part of a wider movement to change the model of large banks and venture capital funds. Token buyers typically get access to a future service once it is launched or rights to its profits.

According to Jordan Belfort, however, the techniques used resemble the tactics of call centers that sell suspicious phone investments – finding supply, aggressive advertising, placing a small part of the market, increasing interest, including with the help of celebrities, and then selling stock before the price has collapsed.

“Everyone wants to ride the wave at the moment. I’m not saying there is anything wrong with the idea of ​​crypto-currencies, not even with the bulbs of the tulips, it’s about the people who are going to get involved and the idea will be corrupted”, said Jordan Belfort.

The former broker stayed 22 months in prison after confirmed guilty for money laundering. After leaving prison in 2005, the 55-year-old Belfort built a career as a writer and motivational lecturer.

Meanwhile, he advises his friends not to participate in primary offerings of crypto-currencies. “This is the biggest fraud in history, such a gigantic scam that will burst into the faces of many people, much worse than anything I’ve done”, finished Jordan Belfort.

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