Topic: ICO Investments Why Risky? - page 18. (Read 2888 times)
ICO investments are become risky because of the irresponsible team owners and developers the government must issue a strict guides to allowed ICO in one country to protect investors from loosing money team owners must provide real documents, license, proven advisors, qualified team members and not just select from different sectors with no expertise and of course funds must be properly escrowed or using a smart contract like the DAICO system.
I think investors are aware of scams because it involve large some of their money for the trust on the project. Investment is risky because many fraud living along the internet which become the utility of other people to gain huge many in easiest way they think. Unsuccessful project is other one why it is risky to invest because sometimes even it has good paper, it has some problem. You have to invest on real potential coin than choosing new profit.
yes, of course, experienced investors do not carelessly place their money on an ICO project that is not yet clear or successful.In fact there are currently a number of ICO projects that have managed to raise funds from investors, and after the funds have been collected, then they run away to bring investors' money. Nothing can guarantee the security of investors' money in the ICO project. Is it possible to involve a trusted third party as an escrow agent for depositing investors' funds in an ICO project? So, if the project fails, the investors' money remains safe and can return to investors.
I think SCAM is the number one that Investors should be aware of, where many developers aim to scamming their investors, by offering an unreasonable and too grandiose whitepaper as the project is considered too perfect without the slightest flaw, or a payback time very short, and also contributes to tokens that are too large. The absence of regulations that are truly guaranteed by the government causes the risk to be very high, the ICO project should provide Escrow facilities where there is a trusted third party guarantee as a place to store investor funds.
I think investors are aware of scams because it involve large some of their money for the trust on the project. Investment is risky because many fraud living along the internet which become the utility of other people to gain huge many in easiest way they think. Unsuccessful project is other one why it is risky to invest because sometimes even it has good paper, it has some problem. You have to invest on real potential coin than choosing new profit.
Most typical investors actually don't read the whitepaper, even though it contains all the important information about the upcoming project and ICO.
Don't hesitate to read it, or at least look at most. Pay attention to strong and negative aspects and add some of your own research. In the end, whitepaper is a silver plate for potential investors. After reading it, you must be able to answer a simple question - what is the value that this project brings to our world? You will also learn what you invest.
Don't hesitate to read it, or at least look at most. Pay attention to strong and negative aspects and add some of your own research. In the end, whitepaper is a silver plate for potential investors. After reading it, you must be able to answer a simple question - what is the value that this project brings to our world? You will also learn what you invest.
I think SCAM is the number one that Investors should be aware of, where many developers aim to scamming their investors, by offering an unreasonable and too grandiose whitepaper as the project is considered too perfect without the slightest flaw, or a payback time very short, and also contributes to tokens that are too large. The absence of regulations that are truly guaranteed by the government causes the risk to be very high, the ICO project should provide Escrow facilities where there is a trusted third party guarantee as a place to store investor funds.
ICO's and traditional IPO's are basically the same, Investors can either loss or gain profit but whats important is you should know what your investing its individuals responsibility, most investors don't care about the future of companies but they are only after the hype. I believe this crypto space has a lot good people and projects and hopefully one day it can compete with stock market by volume.
Without any knowledge invest in ico is too risky, if you have thorough knowledge about ico it is not risky. Before invest just check the ico investment details such as white paper, road map, project details, team members and team manager.
Exactly mate, before investing into a project do your time spent on research if that profitable project. Having a deep depth research is your own risk to decide into your investment so much better you know everything that they have.For me, I usually take a risk if that project managed by the manager who is reputable because I think they know everything they are afraid and careless to lose their reputation because of the scam project.
Without any knowledge invest in ico is too risky, if you have thorough knowledge about ico it is not risky. Before invest just check the ico investment details such as white paper, road map, project details, team members and team manager. Just checkout how long they exist in the market. Get through the reputation they have gained. Those firm with good reputation will not mostly cheat the customers /investors. We can not avoid scam ICOs, its just we need to be so pro-active in choosing the legit ICOs.
there are so many SCAM ICO now that is why most people prefer to have a token that is in the market.
they prefer trading than investing.
there are so many investors who dont want to get involve in any ICO because of SCAMS.
this gives bad effect with some ICO. there are so many legit not who dont reach the softcap.
they prefer trading than investing.
there are so many investors who dont want to get involve in any ICO because of SCAMS.
this gives bad effect with some ICO. there are so many legit not who dont reach the softcap.
I think ico investment risky for them who don't know how to choose a strong project,good project or real project.some people don't study about project beforr he/she invest in the project.So they don't get profit from ico investment even they will fall in loss.but some people do study about the project before he/she invest in a project,so maximum time thet earn profit from ico investment.So before invest in a project analysis is the most important to earn profit.
Well explained but, the question is why is it still there people who are investing in an ICO project when they know that it is too risky? Better tell an ICO investors and ask this question because in this investment the law does not work and cryptocurrency has its own system which could function even without the interference of the other organizations like the government. This is the question that should be put to another thread and we will be more than happy to know more about it.
I can see it very risky too because there are money involved and since it was an ICO the team might run together with the money you put with them. Also in the end the ICO might failed and in return your investment is lower than what you put in.
because now there are so many ICOs that experience scam and fraud tokens, so the ICO is now a big risk if for an investment place and you also have to be careful to look for ICOs that will succeed later
A long article, but I want to summarize them with a phrase, should not invest now. Simply because the market goes down, things will not go as planned by the ICO project owners. I have participated in 3 recent ICO projects, all projects are delayed and that made my portfolio worse.
I have and will always prefer to invest in cryptocurrency itself rather than an project where they start an ICO, not every ICO turn out profitably but I am sure that an investment into Bitcoin will then out some profits no matter long long it takes.
A long article, but I want to summarize them with a phrase, should not invest now. Simply because the market goes down, things will not go as planned by the ICO project owners. I have participated in 3 recent ICO projects, all projects are delayed and that made my portfolio worse.
But now, you wont see much patience with a lot of investors. They want their money back just after the ICO! That is ridiculous. You will see who are not reading the whitepaper before investing.
Because of the great time and hype that happened last year people who has the mind set that they can earn a quick buck in investing in ICOs are swarming all over the crypto space and because of that the value of deserving ICOs is dropping and with that we cannot see the project full potential. Also just so remember that the dip in prices of ICOs after the token sale is not the bounty hunters fault as they only get the smallest allocation of the token sale at their hands and it is their right if they want to sell it right away or not, so with that said it is safe to say that people who sees ICOs as a quick way to earn money is the one to blame.
Good topic. I am alarming and make myself feel uncomfortable with all the factors you listed. Today, unfortunately, most of the ICO projects are fraudulent, and I am obviously prepared to lose money when investing in projects that interest me.
The virtual product angle scare me. The fact that we can not feel or touch the products we are paying for and we can not trace most of the offices of the developers offering the ICO. Last year was great for ICO until people started scamming with it. People will continue to loose money until laws are put up to monitor ICOs. I have not been lucky with ICO because all my investment in it has be listed below the price of purchase.
ICO last year is no different from ICO this year. It's just that bitcoin price went to a crazy pump last year therefore all ICO's are dragged with it's hype.
That "virtual" product are present since ICO industry began. Honestly at most of the cases people are not really into the product or technology why they participate in an ICO but instead they joined because of pure hype that a decent return will come to them in the near future.
Law
..Because this is not a legal framework or a rule framework, the investments in such imaginary products can be very risky for this reason. Of course, high risk means high earnings, but you are not able to do any legal action when you are defrauded in your investments.
That's why ICO regulations become more of strictier now compare back then. Correct me if Im wrong but in U.S it's now mandatory that ICOs based there should registered in SEC? If that's the case, Im seeing that it can give comfort to the investors that they can have a legal action against the ICO once it became sh*t although Im seeing a lots of regulations that's not meant for crypto.
Yes, the US now offers certain conditions for these projects and does not allow US citizens to participate in projects that have not met these requirements. I wanted to give information in general because I did not write a article for a single country. For that reason, I wanted to express the difficulties that all the world's investors can face today in the field of law. Of course, what you write is not wrong, but if you need to comment on the United States quite accurate and important information.
If only it went smoothly for the market last year maybe we have a better one today. Only the hype of BTC dragged most of the alts, it was a good opportunity to engage in ICOS until then. The day comes and boom most ICOS are being said as scam or ponzi projects and there it goes-tainted the name and some other few coins that is worth the trust. The market today is at where it supposed to be, if another big fall donw of prices then I can't imagine anymore what could happen to crypto currencies.
The virtual product angle scare me. The fact that we can not feel or touch the products we are paying for and we can not trace most of the offices of the developers offering the ICO. Last year was great for ICO until people started scamming with it. People will continue to loose money until laws are put up to monitor ICOs. I have not been lucky with ICO because all my investment in it has be listed below the price of purchase.
The virtual product scares you and yet you are in bitcointalk.
Last year was a blast. No doubt about that but that is also because of the hype that happened with major crypto currencies. Bitcoin, Ethereum, BCH and more. When I say major though, it is the most supported by people. I do not say they are all that great than bitcoin.
Now with that hype includes the price of every token that is under ERC20 of Ethereum which is also being boosted in price.
You can but like small amount of tokens for 1 Ethereum because of it. They even put "0.1" Ethereum as the minimum to buy the token.
Now, that is just $21-22 which I dont think can be a minimum for buying their tokens.
Another key is their roadmap. Most of the early ICO have been for a year so they are almost halfway their roadmap and success could be seen already.
But now, you wont see much patience with a lot of investors. They want their money back just after the ICO! That is ridiculous. You will see who are not reading the whitepaper before investing.
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