The Federal Financial Supervisory Authority, the main German financial regulator, has issued a warning about the risk of investing in the Initial Coin Offerings (ICOs). Among the numerous risks listed by the German watchdog there is even the risk of the total loss of the invested sum.
As well, ICO can attract scammers and fraudsters, who may involve investors in their “projects” and then disappear with the investors` money.
Cryptocurrency is neither regulated nor controlled, hence, problems arise when it comes to the verification of the identity and the credibility of the token providers. Basically, the customers and investors are left on their own. The German regulator doesn’t forbid investing in cryptocurrencies of any transactions connected with crypto coins, just it accentuates that investors shall be very careful when doing this and that they shall understand all risk of such investments.