Bitcoin Forum

One guy wrote a post on the Internet. He invested in an ICO and did not know what to tell his wife because the money he invested were borrowed from a bank and the ICO failed. Nobody wants those tokens anymore. So, what should this guy do now, in your opinion?

     When we were launching an ICO I spoke to almost all of our investors. Not with all of them but with the majority. My message was simple – you should invest the amount of money you are willing to lose. I kept saying this over and over again. I even refused some of the potential investors. Not many, but still I turned two or three of them down. It was not about ethics. It was not about morality. It was not about reputation.

The thing is that one of my businesses is a detective agency. Thus, I saw many malicious fraud cases. People say a project will be a success and then some force majeure happens. This is when infuriated investors hire detectives to find the fraudsters. We conduct a thorough investigation on the case and see that no one actually intended to cheat at first. It just happened.They just did not calculate their own strength. Did not foresee all the possible outcomes. In fact, willful fraud cases are not as common as single cases of stupidity. But the outcome is always the same – court cases initiated by the investors and jail for the stupid entrepreneur.

Some people wrongly assume that it is possible to flee – there were cases when we had been searching for 2 years but managed to find people in the end. Whatever large amount of investments a person gets, they will lose it in a couple of years if they have no experience of managing such sums. Moreover, they will end up in a much worse situation than they were before. 

Knowing all this, I have decided to work only with those investors who were ready to lose money. Even though my thoughts are unlikely to be heard, I highly recommend that all ICOs adopt this policy. We all play a very high-risk game: 9 projects out of 10 fail after collecting money. Different people, including ones like the guy I was talking about, invest into projects; they invest money borrowed from banks. These people are stupid. They are not ready to be investors. The ICO team has to explain that investing is out of their league. Maybe they are just not suited for this.

However, ICOs do not do this. As a result, after crying his eyes out, our guy will get angry and file a report to the police to initiate criminal proceedings against the ICO team. The team will have many unpleasant years ahead.

So maybe it is reasonable to prevent such situations? Maybe saying ‘guys, we can fail’ at the beginning makes perfect sense? ‘Investing credit money in an ICO is a bad idea and this is why we refuse you’?

Absolutely agree! There is nothing good from stupid money!

It is a pity that people often see profits but ignore risks.
Because crypto money markets are risky, it makes no sense that you shouldn't invest too much money.

He should find a part-time job besides his main job to make enough money to pay the loan. Before his wife gets crazy and kicks his ass out of the house. And better get out of the crypto world, and never forget about his stupid investment in ICO, this is a good experience for his life later.

That is a foolish thing to do. Investing money borrowed from the bank? If you invest on such an ICO. You must be cautious on that action. Investing in an ICO is risky. You must invest what you want to lose. I totally agree on you sir. That was really a foolish thing. I feel bad for his wife. He should really find a decent job. Work hard for a day to pay for those debt on that bank.

I think that many people now invest in ICOs without rationality. They don't have the knowledge to invest. So I think it is necessary to carry out some investment education now. Every investor needs to understand what they are doing before investing.

You are right about investing what you can afford to loose in cryptos. I am totally agree.
I have 1 question: you were saying that you refuse to sell to some investors in your ICO, I dont understand this, since all the investors are equal in the ICO, how come you just refuse some ? and accept some ?

I think to invest money borrow from the bank is foolish thing to do. Investing money borrowed from the bank? If you invest on such an ICO. You must be cautious on that action. Investing in an ICO is risky. You must invest what you want to lose. I totally agree on you sir. That was really a foolish thing. I feel bad for his wife. He should really find a decent job. Work hard for a day to pay for those debt on that bank.

I spoke with everybody via email. It was difficult, but necessary

Great insight here, thanks for sharing.

It's really hard to start a successful company, statistically speaking.

It's even harder to launch a tech company, and that's what cryptocurrencies are at their core.

Then you factor in what happens when people see mass sums of money they've never seen before, and are expected to allocate it correctly, with team members.

That's just plain difficult, unless you've done it before, or you understand what it takes to become competent in new fields and handle that pressure.

Thought-provoking, thanks again, this is something to chew on.

Yes, it's a good message that you are sending- never invest what you can't afford to lose. But people will still do this kind of risky moves, with the hopes that they will get rich.

Why do people invest money they do not have? Investing for me means to increase my own money and not to lend me money.

Most people think that crypto-related projects are about easy gains. As for me, investing borrowed money in an ICO is the top idiotism! I think that people must learn more about blockchain and its logic, about how to find a project and so on.

In fact, there are many such people, people only see the immediate profits, they are eager to change the current state of life, so they choose to borrow money, but this is not a reasonable way.

This is not idiotism this is suicide. If you're borrow money and invest them to the ICO you should be ready to lose ALL your money! After that you need to take money cause if you won't do this bank will take your property. If you're investing your money all that you can lose is 100% but if you're borrow money you'll lose more than 100% .
I think when you're investing to the crypto you should remember one rule - no loans! This is rule number one.
thank for sharing this history. Unfortunately this is not just one story, there are a lot of stories like this on the market.

Nothing useful from a stupid money, all you will get is a prolonged nightmare. I try to hold my emotions to invest only in the crypto world only from 10 percent maximum of my cold money. And I will not be poor if my investment is not as expected, of course I will hodl for a long period of time with no regard for its volatility.

Great story . it's a pity that not everyone is so lucky . I for example spend my time and there are no such results )))

Such situations will continue to happen and nothing can be done about it. There will always be scammers, you have to learn how to analyze projects yourself.

This is not idiotism this is suicide. If you're borrow money and invest them to the ICO you should be ready to lose ALL your money! After that you need to take money cause if you won't do this bank will take your property. If you're investing your money all that you can lose is 100% but if you're borrow money you'll lose more than 100% .
I think when you're investing to the crypto you should remember one rule - no loans! This is rule number one.
thank for sharing this history. Unfortunately this is not just one story, there are a lot of stories like this on the market.

Let the job seek a second or third and the family saves from the creditors. There is no way out, did the business answer for it.

not wrong with your opinion, people should already know about the risks that occur when deciding to invest in an ICO. and investing all the money borrowed from a bank is stupid. I will never dare to do that.

I believe this is the most stupidity in the cryptocurrency field - to take credit from the bank and invest in little-known and unreliable ICO projects, which are all in most of these. Are these people so desperate that they are ready to put everyone at risk and ruin their lives? Of course I'm sorry for them, but these are their problems and we need to learn from their mistakes.

The ICO is not a lottery game, because the lottery has a very low chance of winning, 10 million may be one person, and totally dependent on luck, and ICO venture capital is different. Get the information early, know how to analyze the evaluation of opportunities, the 3 failed projects just win one project only, the opportunity to become your billionaire is completely base.

I don't understand these people who take out loans to invest in ICO.They are not aware of the risks that may occur.

The first rule is invest only what you can afford to loose, everyone knows this. If you grow greedy you should know better than borrowing. Frankly, this is a hard lesson to learn this way.

you think like a decent person
Few people that do projects, think about someone else's profits or other people's risks. only about their

but in general, those people that are not the first day familiar with the crypto currency, are aware of the potential risks

Yeah right,only fool can make this stupid decisions,were in the world that you will make a loan without your wifes concent and will invest in an ico that everyone here knows risky.now hes a dead man if the wifes found this

Better find an extra job do it overtime to cover the banks loan or else you will loss your wife and maybe family

there are times where unexpected happens especially in crypto where the risk is great. sometimes the end result is not the one we expect so we suffer from it. we will always hear in this forum to invest only what we can afford to lose. don't just think of profit think also the risk.

Many investors do not understand that the project may simply not be ready to be successful, and not just scammers . And credit money is absolutely impossible to invest anywhere-especially in what has the risk of loss . Unfortunately not all people understand this

Stupid money, stupid person. Forgive me for saying that, but I believe it's quite unreasonable for any one to invest money that was borrowed into a business that is as risky as cryptocurrency. Even with your own money, it is advised that you invest what you can afford to lose, preferably your spare money.

The stupidity of people is sometimes just fascinating. It's totally stupid to invest in projects you're not sure about, not really. and even if the credit - so it's up stupidity

Everyone has the right to dispose of their money as they want . Borrow of course stupid for this-but it's everyone's business . Someone more risky, someone less. We are all different, different thoughts and strategies

It's not an exit, if you can invest money in ICO, that you cant loose, you will loose it again and again

Very sad and I am sorry for him. Was it his first time investing. I don't think it is a good idea to borrow money for investment. Not in cryptos alone, but any aspect of investment. No one should try that.

Wow! This is such a great read. Borrowing money for an investment is usually not a good idea, should the investment flop, it leaves you in debt and subsequently worse off. ICO's also need to be more responsible, they need to include clauses like you've suggested so the potential investor is aware.

Of course, borrowing money is not a good idea, what it make it worst is that you invested on something that you don't have total control specially the risk factor. Now that the ICO turns out to be a scam, then your worst nightmare is realised. However, there's no one to blame for your failure but you. You didn't do your homework and probably just ride the hype and the next thing you know, the scammers disappears. That's why we always says that that you need to do your research and please don't used borrowed money. Its a expensive lessons to learn and its going to sting a bit.

A lot of beginners who only see money without seeing how to get it, and seeing that investment is always profitable regardless of the risk, until they dare to take a high risk such as borrowing from a bank, they should first study the cryptocurancy before they start.

Thank you! I'm trying to be one

Yeah, you are right but newcomers are usually not aware of risks and they are willing to invest into any project that offers generous payouts in the future. The mission of every crypto enthusiast is to warn newbies about high risks and encourage them to learn more about the crypto market before investing

And what to say, he himself contains the family, let him finds a way out himself. Why should a wife know, it is better to find a second job with a good income and to cover expenses than to think about easy earnings.

A lot of people want to find the easiest and fastest way to make money and become rich. That's human nature. And this attitude s even more common when it comes to the crypto market as many newbies actually believe they'll make money out of thin air without any experience or knowledge.

It is very easy to get a lot of money in crypto with the help of deceit and it is so easy as well to get money in the honest way as well, so I consider that crypto is very univerrsal thing to judge it or to have any disagreements here.

Yes, I agree. Investing money is like losing money. To take risks from the beginning of investment. So, invest in your financial capacity.

Stupid money are not always just stupid, there is a part of deals which confirms the idea that everything is genious is simple too, I like this statement and it can be used here in very suitable time.

I still do not get how people do not know that they should only be investing the money that they can afford to lose into the projects, especially ICOs, they are very risky and when you put your money in it you should bear in mind that there is a possibility that you will never see that money again. No one should ever borrow money to invest in an ICO, it is way too risky.

It's a pity that such stories have nothing to do with reality and with how people try to deceive other people. The problem is that every new scammer dreams of easy money and thinks he is much smarter than police and evil investors! Sometimes deceivers can escape punishment but more often this is a lot of problems and nerves. Easy money pushes people to the path of evil and it's terrible!

I agree - at school we were not taught this - taught to work for days, and live from wages to salaries.

it's also not bad that people started investing their money in projects, but of course many do not understand what's what - just because of the beautiful eTektek are investing in projects, I think it's necessary to control processes, study projects - now anyone can create a start-up project and sell at any price their tokens.

Again - it's nice to see new projects aimed at studying and monitoring projects on its base. which, in turn, helps the process as a whole, people do not take risks, projects are implemented.

Maybe you should have some kind of agreement beforehand. Invest into lawyers as well. Making sure you deliver your promises and you shouldn't haveto worry about legal battles. If someone loses money because they invested and couldnt quadruple it. Doesn't mean the ICO was a scam.

Indeed, the electronic money market is risky, but it also makes many people rich. Therefore, in my opinion, when you join this exciting market, start with the investment money that can lose it, your life is not affected much. Most important is to learn to have the knowledge, experience and even in every investment decision.

This is really sad news and the person is not the only one there is huge list of such type of people who barrow the money for crypto trading and had lost. I always the formula never invest whole money in crytpo trading or in ICO always invest small amount and if you want large then divide it in many, don't put all eggs in one basket.

yes in this new crypto world you need to invest something or how much not to lose terribly.

the market is relatively young - laws are not clear, anyone does what he wants, this is the whole point!

you can get rich overnight - and you can lose everything, or attachments - and that's for sure! do not borrow money for high-risk projects, start-ups for example, or invest all money in one project or coin !!

Yes, personally, my experience has shown that you should not enter for example in haypovye projects - which just accrue%, this can not be - if you think, this pyramid - gospada - free cheese -...

Fact, yes we were suppose to work everyday to handle our family this crypto technology is tremendous one which helps us with fund. If you invest in a right coin you will get a good return. If not you will lose as simple like that.

Read ICOs portfolio first before investing your money, search good feedback, and ensure you ready to lose your money. investing on ICO is very high because no covering from government. Learn more from this forum about cryptocurrency the take action what will you do

If i was him i would confess with my wife and hope that she will forgive me, then we work together to pay for loan.
You're right, the lesson is only invest what you can afford to lose, and don't invest all money into one project. Carefully research about the project before investing is needed.

Woah, this is a really thing that happening in the ICOs now. This is a bad decision making though. Investing in ICO is like playing casino, you will probably risking your money without any know or chance of  winning. Risking our borrowing money just to invest in a ICO was a very bad decision for me. If you want to be successful here in the industry you must be wise and not risk your money without any chance of winning at all.

Investing in any kind of asset is a big risk. Those who decided to invest should understand the risks of losing their money. Taking a loan from a bank and investing it in the crypt is stupid. At the end of last year, we saw the growth of the crypto market and what do we see now? A very long correction that may end tomorrow or maybe in two years. So, do not take loans from friends.

That's for sure.  Do not borrow or take loans to invest in ICO, you need to invest that you can afford to lose!

this guy should work now to pay his credit to the bank. then he should work more to get money for investments. during this period he could choose ICO smarter.

"Smart money are just dump money went throu a crash", that's fair. A lot of people who are on top now in crypto are starte with a pery poor decisions and had been rekt

i am truly agree too. in this world stupid money is best. you have to find any stupid kind money  and collect them all like a pokemon trainer.

I think it would be right. You raised a very important issue. You need to invest as much as you can lose. It seems to be a simple rule that should be followed by all investors. But unfortunately it is not. Therefore, if during the ICO it is mentioned what risks investors bear, then perhaps this would change the situation and many would think before investing their money.

I fully support this idea. I do not understand why people take loans for cryptocurrencies, but this nonsense can be forgiven. I think that if such people are stopped in time, many troubles can be ruled out.

Well, I think it would be a good solution for the project. But on the other hand, this can be used by scammers to throw off all the risks. I think every investor should think for himself and understand the risks he carries investing in such an unpredictable industry as cryptocurrency.

Not all ICOs are bad, maybe the ICO experienced by your friends, one of the ICOs, with the aim of only deceiving the evidence, is that many ICOs prove that they really floated the project, so before we decided to join the ICO we had to analyze what was The ICO and not only are tempted by the big profits by only investing in ICOs because the right ICOs are those that do not offer benefits in front of them but project development.

Long but true. People need to be much more careful with the way they invest their money.

In finance there are terms called fast money and slow money, investing in cryptocurrencies is definitely fast money, high turnover, high expectations and fast ROIs. Slow money is more suitable for long term investments like stocks and bonds, and should not be applied to volatile market unless you are a thrll seeking idiot.

Keep it smart, play safe and don't give into FUD/FOMO

I think that money isn't stupid but it is the real evil) People become crazy because of money. To my mind, this is the reason of most troubles today. to my mind, we need to have the right attitude to money

Im sure he is not the only one in this situation, i would say a lot of people
borrowed money to put into ICO's and into Crypto late last year thinking
the values were going to keep rising.

In many peoples eyes there was little risk. That investment saying "only
put in what you can afford to loose" is so relevant.
 

Your message "you should invest the amount of money you are willing to lose". That's right. No one can prodict that ICO will succes or not that's why we must invest  the amount of money you are willing to lose. Some people when he see news about that project say "this project great, will go to the moon,etc" He be stupid and use all methods including borrow money at the bank

I agree 100% with the Idea of investing only what we can loose.
The translation of this sentence in my language sounds like "don't invest fiat, invest only time"... and that's what I do with bounty campaigns.

as you said you always tell your investors to put in what they can afford!! the man took a huge risk and it didnt pan out well!! but sometimes are some risk smart!! Bank Loan! that was Xtreme... My advice is for him to just come out with the truth early

The perception of reality is different amongst many people and especially when money is involved. It should be common sense for any investor to understand the risks involved in any startup. This is basically what an ICO is, a startup. Most startups fail, some have varying success, some are wildly successful...and the difference between all three could merely be time. Amazon for instance was going nowhere for years until just fairly recently. Now it is one of the biggest companies in the world.
As an investor you need to answer some serious questions:
1. Am i in this for the long term or short term?
2. Am I actively or passively investing time/money into the project (personal responsibility)
3. How much am i willing to lose
4. Will i conduct my due diligence in the project.

Number 4 is often the most overlooked question. Do I as an investor understand the product i am backing. Do i understand the risks, do i know who is running the company/project?

There are too many people shirking personal responsibility in life and this is the same thing with investing.

Unfortunately, in pursuit of profit people ignore risks. Investing money is a risky business in any market. The most often mistake such people to do is to invest all their money in a certain project because they had heard someone got a big profit without puzzling out how it works. If you want to be successful in the crypto industry, you should invest money affordable to lose, especially in such ICO projects with 50/50 chance of winning.

that's a good statement. questions and logical thoughts. it's very compatible. an investor with this kind of approach is the real investor who knows what he wants. such questions enable us to better understand project and investment. thank you.