Do you know that most of the ICO's are scam .
Well if you don't here are some reasons behind it :-
1.) Most of these ICO's have no business model
2.) Most of these ICO's would never be profitable
3.) High Market cap for a project / ICO with no development , code or any past experiences
4.) Most of them have a 1 year roadmap which means no vision
5.) 5 months of hard work and for that they get Millions in funding
6.) Dumb people running the shitshow
7.) Behind the scenes it is all about Money
What makes an ICO legit ?
1.) Working product
2.) Practical Use case
3.) Legit Team
4.) Limited Funding ( Based upon Fair Market valuation )
Why are these days ICO raising so much money ?
Answer :- People are dumb and greedy they want to invest in the next ETH , STRATIS , WINGS , EDG , IOTA , XEL but they do not understand that Stratis had less than 1000 contributors and most of these ICO's happened during bear season when most of the people were not active in the scene .
Should I invest in ICO's ?
Yes , some ICO's are legit and can be good investments such as MobileGo , Edgeless , Civic etc which can yield you good ROI in long term but then always due diligence is important .
Should I invest in ICO's with high marketcap ?
No , High marketcap means a lot of people have invested in an ICO seeking for quick buck or the ICO team has been dependent on marketing to get more investors which makes a lot of weak hands so when the marketcap is not able to sustain the demand and supply the price will likely go down . When the price goes down is the time to invest but not during the ICO .
I fomo like a noob during ICO as I don't want to miss it .
Well then you are a fuking sheep who want to buy in today and be a millionaire tomorrow well it does not work that way , you can always buy after it hits the exchange . Always have a good risk management system in place where you are able to manage your risk/reward ratio according to your portfolio .
Always :-
Ask tough questions to the team and you will know the reality Best Regards ,
VerthagOGWhile i agree with you that many of these projects are shady and some of them even straight up scams, i feel crypto in general has been playing the labeling game for far too long.
As per your points.
1.) Most of these ICO's have no business model - So ? They describe what their plan is (be it via whitepaper or other documentation - some even have partial or working products). Giving a shot at something experimental or sometimes even outright stupid does not mean that the project is a scam. They let you know what amount they want and what they plan to do. If people wish to support that idea they are free to do so.
2.) Most of these ICO's would never be profitable - They do not have to be. People seem to be under assumptions that only profitable projects may exist, that however is not the case. Many good projects run at net negative, that does not mean they are a scam however.
3.) High Market cap for a project / ICO with no development , code or any past experiences - Depending on the ICO, if they promise development (high or low marketcap has no difference here) and they do not deliver then it is a scam. Lack of past experience does not mean it is a scam, maybe they are starting fresh and want to get into the crypto sphere. For it to be a scam, they would need to actually scam.
4.) Most of them have a 1 year roadmap which means no vision
- Vision and direction can be shaped over the course of the year. This does not automatically mean it is a scam.
5.) 5 months of hard work and for that they get Millions in funding - This does not mean it is a scam, it is THEIR choice how much they want for their projects funding. They set their own goals, be them what they may, and if people think those goals are justified they will give them the funds.
6.) Dumb people running the shitshow - stupidity and ignorance does not make anything a scam.
7.) Behind the scenes it is all about Money - Tell me me one business that is not after money.
While i agree that there is a lot of money grabbing and outright scamming going on, i think it is time to stop labeling everything as a scam. Its been a plague that has been infesting the whole crypto sphere for way too long and people need to grow the fuck up if we ever want to be taken seriously.
