Calling many of the dozens of initial coin offerings that have taken place this year “frauds,” the Hayman Capital Management founder warned in a Bloomberg Television interview that investors will face steep losses.
“A whole bunch of people are going to lose a lot of money,” Bass said in an interview with Erik Schatzker. “These ICOs -- you’re going to see a bunch of them go completely broke. A bunch of them are frauds, and that is going to be problematic for all the people that just rushed in.”
This year, more than $2 billion has flowed into ICOs — which allow cryptocurrency start-ups to raise funds by issuing their own tokens — according to Coinschedule.com.
Once the “gold rush” settles down, Bass said, cryptocurrencies could be a viable asset class.
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