Like in any other investments, investing on ICOs also have some risk. How risky is it? You will understand after spending some time understanding all things you need to face once you throw money on any ICOs. It's possible that you can gained big returns while at the same time, you can also lose big money here if the ICO goes wrong.
Here are some of the risks:
- Since helding an ICO is one of the "fastest" way to gather money, scammers might take advantages on this.
- Distirbution
- To be able to take advantage of the tokens you will received on ICO, it must be listed first on an exchange. Not just an "exchange" but an exchange with big volume.
- Too much hype on the project attracting investors. But in the end, the expectations doesn't reached the reality even for long term.
- etc. etc etc.
You can minimized thoses risks by doing some "quality check" on some of the projects. It will not give you an assurance that they will run successfully in the long run but it might give you some ideas that you are throwing away your money to a project that is worth a shot.
Once you invested on ICO and that project run for long run, don't expect much profit at early phase. Some tokens when listed on exchange are having a slow rise. They also following their roadmaps so don't rush things.