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Although ICOs can be utilized for fraud, They're also used for legal activities which include company finance and charitable fundraising.[28] The Securities and Trade Fee (SEC) has warned traders to beware of scammers using ICOs to execute "pump and dump" techniques, in which the scammer talks up the worth of an ICO in an effort to crank out fascination and generate up the worth with the cash, after which speedily "dumps" the coins for a gain.[29]

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