Although the primary supply of coins can help start-UPS raise capital at an early stage and to build their target audience, but according to the head of one of the world’s largest stock exchanges, ICO harmful to retail investors.

During the conference Future of Fintech, held yesterday in new York, CEO of Friedman Nasdaq adena (Adena Friedman) said that the hype around these projects attracted such investors as “Auntie Mae’s from Iowa.”

“A complete rejection of the rules when the company can easily take people’s money and not to give any information, lack of control… I have the impression that you are people.”

Friedman also stressed that he agreed with the definition the SEC, under which such projects are offers of securities.

We will remind that in the beginning of month the Chairman of the Commission on securities and exchange Commission has stated that bitcoin does not fall under the purview of the SEC, while the tokens representing the digital asset, as well as the ICO, are securities.

Last week the Director of the division of corporate Finance SEC added that Ethereum, as well as other utility-tokens should not be defined as securities.

In continuation of his speech, Friedman expressed concern that in contrast to companies raising funds through initial public offerings (IPO), the organizers of the ICO do not obey to strict rules on information disclosure.

“I’m concerned about the lack of transparency, control and accountability of companies, attracting capital through ICO” she said.

It should be noted that unlike primary offerings of coins, statements Friedman about cryptocurrencies in General, are in a more positive way.

So last month the CEO of Nasdaq said that cryptocurrencies — the “right next step”, and did not rule out the possibility that in the future, Nasdaq could become the cryptocurrency exchange.

We will remind that in April, Nasdaq signed an agreement with Gemini Trust Company, in which the crypto currency exchange has got a license for the technology oversight of the Nasdaq market, aimed at preventing fraud and illegal trade.

However, the listing of cryptocurrencies on the known stock exchange is not considered, as according to Friedman the stock market is not yet sufficiently “ripe”.

“We believe that crypto-currencies can become something really interesting and important on the Internet. However, they can also wither on the vine and repeat the fate of the phenomenon of Beanie Baby toys. Time will tell.”

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