ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.


24hr ---

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story


Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
Ether Price Analysis
Contact Us

Dutch Markets Authority Chair Warns Against Token Offering Investment




The Netherlands’ financial market regulator has advised investors against putting their money into token offerings.

In a November 13 press release, the Dutch Authority for the Financial Markets (AFM) advised the public against investing in token offerings “under the current circumstances." The body cautioned that the fundraising mechanism, also known as an initial coin offering (ICO), is “vulnerable to deception, fraud and manipulation,” and that as a result, token offering participants “run a very high risk of losing their entire deposit.”

Scams are common in the space, the document contends, because “the anonymous and cross-border character of blockchain technology enables advanced forms of a traditional pyramid scheme that are difficult to recognize.” The AFM notes that token offering scams have already been identified in other countries.

Additionally, the hype around cryptocurrencies and the high level of expertise needed to thoroughly evaluate the merits of proposed blockchain projects leave the average person poorly positioned to appraise the worthiness of such investment opportunities. And the fact that “ICO providers are often not transparent in their information provision” further increases the likelihood that investors will make poor choices.

To make matters worse, token offerings are often structured in such a way that they are not subject to regulation so, in some cases, those who have lost their investments have no legitimate means by which to recover them.

The press release also included a quotation of AFM Chairman Merel van Vroonhoven, who said, “The high risks of scams and loss of deposits in combination with the hype surrounding ICOs of this moment is a dangerous cocktail.”

In June 2017, the AFM issued a similar warning on the topic of “investing in virtual currencies,” cautioning would-be holders that digital assets’ values are highly volatile, among other admonitions.

Quotes translated from Dutch using Google Translate.

Adam Reese

Adam Reese is a Los Angeles-based writer interested in technology, domestic and international politics, social issues, infrastructure and the arts. Adam holds value in Ether, Bitcoin, and Monero.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Dutch, Netherlands or other Ethereum world news.