Topic: Why do most people invest in wrong ICOs to lose money ? - page 6. (Read 2523 times)

Wrong ICO's are overhyped and make false claims and announces to gain easy profit not concentrating on the product itself, so when they gather the cap they have no willing desire to follow the roadmap and develop it, cause it was not the mean of it. More and more project ICO's that have no real application of blockchain technology are coming out of nowhere, because blockchain is a trend.

Unfortunately, most people cannot do the serious research required to figure out good
ICOs from bad. So long as there is a big crypto boom going, even pigs will fly. Typically in
later mature stage of the cycle,  the bad projects crash down to reality.

Because most folks are buying into coins that have pie in the sky promises.  It's like saying hey give me 10 million for this product first and then I build it, but wait I'm paying bounties, promotions, and giving friends, families, 'advisors', shillers promotional deals that give them instant % gains compared to ICO prices.  Then a dump occurs because, why not instant profit the 10, 15, 20% you just gained free.

If someone gave you a year salary to work (with no restrictions on actually working or not), would you even work?  No, you'd take the money and travel, pay to speak conferences, submit yourself for pay to win awards, etc.  Maybe slowly dabble in what you wanted to do for the ICO, but have zero accountability.

Most ICO's try the "utility" token route to bypass things, like buying Disney Land Cash with fiat.  You're buying a worthless piece of paper and using it.  If someone came to your house and asked you for $20 bucks for fake pizza cash, you'd slam the door in their face.

Most ICO's today seem to be a drawn out version  of this, and finding the right team that really believes in the stuff they sell is rare.  Not many people driven to change or work after you give them millions and no accountability.  Pair that with everyone trying to "why no moon" after a week, insta red candles.

Lack of knowledge or the company doing the iCO is just really good in saying sweet words that gets their services more exciting. But in the end it is all a big fat scam.

First is really knowing where you are stepping at.
Better if it is already a running company though many new ones are also trustworthy.

If it is really a scam without you knowing it then I am just sorry.
Better get another capital because that money is bye bye.

Howey test
And if it will make you feel better, SEC will not knock on your door as an investor, but it will get a hold on the company and team, that is doing the ICO and ask them kindly to refund all investors and pay fines on top. And I suspect at this stage 90% of ICO teams will choose to put a blame on the government and just run with the money. Sad, but it happened in the past.

I think the first reason that guide people to this mistake is not getting enough time to make their careful researchs about this projects before investing. Many people treat ICOs like gambling and think that it depends only in lucj which is wrong idea.

specially on how they make a project the content of it how they it will look like to believe some people to invest with for, and yes some scammy coins are involved also so before you go make some research and study for it.

It seems like OP has some special magical crystal ball and knows exactly which are the right ICOs to invest. Maybe he should help others and tell them where he gets his information instead of being gleeful!

ICOs were a nice wild west game in the summer of this year. I also invested in some for sure, but has anyone ever though or asked about the legal consquences?

Ever though about Harvey Test?

So read this first before doing an ICO: https://drive.google.com/file/d/0B6GBthMmP7QPSjhwNVpyZWZLNHc/view

All ICOs are in fact securities, so they will have to give their money back if the SEC knocks on your door. They will for sure knock on your door.

Coz else they US and any other state would loose a lot of possible tax money as profits or prices or value of the coins rise.

So be aware.  

Before their investment they're getting tricked by hype makers. They think one projects is awesome but then they see it's actually a fault. Then they start making weird decissions after they see that bad result.

Alot  of ICO coming up daily, these calls for caution from all investor, more research work has to be done in other to have a profitable investment.

Because there is more or less fixed number of fiat in the world. For some coins to go 100x up, 100 times more have to go 1x down.

Well if you got some good marketing almost every project can get some pump these days

To be honest the only explanation to this is the wrong coins or scammy projects are usually the loudest as they offer returns which are to good to be true or the simply have whales on speed dial to support them....All in all its time for deserving projects to bring the A game and convince people why they should be the best thing for the market.

I think the most important reason for this is that they can hang on the back of this wind because they can easily be rich on the path. I have not invested in ico projects so far.Both they sounded unbelievable to me and they wasn't physically revealing a real product. But lately I can say that I'm starting to get really strong projects.

scam icos are structural better at marketing than serious icos, they dont have to work economically with the funds, so people simply invest into the scam icos because they are marketing themselves more appealing

you guys will have to live with that.

That is why we should always do our due diligence before investing in any ICO projects. 1st of all, choosing a strong project team to begin with will definitely lead you to a higher success rate.
Carefully examine the project. Read the information on the project's website, check out the team and the advisors, and read up on their ba :-*ckgrounds.
If there are outside investors involved, see who they are. A big VC fund might indicate a project with a higher chance of success.
Check out the project's social channels and blogs: Are they updated frequently? Are they run professionally?
Read the project's whitepaper; if it's too technical, find an expert's evaluation or ask one to evaluate it.
Does the team already have a working product? Perhaps in beta or alpha stage? If possible, try it out. A solid working product, or at least a proof of concept, might mean the team is serious and potentially already ahead of their competitors in the space.
Carefully examine the ICO terms and conditions: Has there been a large pre-sale discount? Is the total market cap and the amount of funds being collected realistic and reasonable? For example, a company making a decentralized calendar app probably does not mean half a billion dollars in funding.
What's the project roadmap like? Does it appear realistic, or is it just a wish list?
What's the team's plan for spending those ICO funds moving forward?
See what social channels are saying. Check Slack, Reddit, Telegram, and more, but be wary that there will be lots of unreasonable shilling for the project, as well as just plain clueless comments. Use common sense; if something feels off, stay away from it.
Never invest more than you're prepared to lose. And when investing in ICOs, understand that this is the riskiest possible type of investing.

now the Crypto currency is an incredible trend and much unfortunately on this wave having only the idea of enriching and doing nothing more fulfill their plans
while doing harm to the community and projects that want and can do incredibly positive things

This actually makes sense, but is still a gamble at the end of the day. We are all playing with our own money which we could lose at any point of time since majority of the ICOs are scams. For example, look at Electroneum. I have invested a very small amount into this coin and had good expectations since they reached their hard cap in less than a month. Now, I am not expecting much since they did not fulfill their promises. I am patiently watching them and am neutral about this coin currently. This is the risk with ICOs these days, but even if one takes off as you said, it would all be worth it.

going back to the original lead on this thread, I find the Australian Government's investment in Energy blockchain to be interesting:
 
 https://www.coindesk.com/australian-government-grants-8-million-for-blockchain-energy-pilot/

any connections, that Bitcoin forum members know about, between this effort and other energy related ICOs that the OP had mentioned?