Bloomberg: IEO still exposes investors to fraud risks, and regulators will focus on not yet

Bloomberg said that, like the ICO boom, the latest financing mechanism, IEO, still exposes investors to fraud risks. But it is still unclear whether it is more focused on IEO than ICO regulators. Securities attorney Zach Fallon said that IEO completely replicated the ICO model and made the situation worse. Fallon said that forcing investors to use platform coins makes regulators more skeptical about IEO. Since IEO tokens are immediately placed on the exchange and sold in the secondary market, the SEC is more likely to treat it as a security. The relevant exchanges also seem to play the role of broker-dealer. At the same time, Bittrex CEO Bill Shihara said: "IEO is likely to exceed ICO in 2017." Arca Funds partner Jeff Dorman said that because investors have high hopes for IEO, platform coins such as BNB have performed well recently, with an average increase of 200. %. Dorman said: "The irony is that this is contradictory to the decentralized spirit of encryption, but as long as the IEO model works, this is easily overlooked… everyone involved has a strong motivation not to go Killing IEO, the 'Golden Goose'." And Bitcamp CEO Nejc Kofric said: "Before we enter this market, the industry needs to be better regulated. Of course there are still some exchanges entering this field, I Think this is short-sighted."