According to the results of studies on the risks related to cryptocurrency investments, conducted by Ernst & Young (EY) is the world’s largest audit and consulting company became known that more than 10% of all funds raised in the framework of ICO, lost or stolen as a result of hacker attacks.
EY experts analyzed information about 372 ICO and found that the amount missing is about $400 million of the $3.7 billion of total collections. Phishing and spoofing of sites most actively used by fraudsters. Using these methods the hackers stole up to $1.5 million every month.
The study showed a decrease in the popularity of ICO in the autumn of 2017. In November, the goal was reached only 25% of start-UPS, in contrast to the figures of 90 percent in June.
Paul Brodie (Paul Brody), head of innovation of the blockchain at Ernst & Young, explained:
«The quality of some business plans came as a shock to our experts, who found clear bugs in the code and conflicts of interest between companies producing tokens and token holders».
During initial placement of the coins (ICO) of the company to attract investments to Finance their ideas, according to experts, is not always associated with the need to use the blockchain.
IOSCO international organization, composed of regulators from 115 countries and territories covering 95% of the world market of securities is called investment in ICO highly speculative operations and urged investors to exercise caution when making decisions about investing in such projects.