ICO Investments Why Risky?

[ecnalubma]

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.

[1715502946]

1715502946

[denuhaqiqi]

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.

[xlmlover]

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.

[Naughty Princess]

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.

[denuhaqiqi]

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.

[ice18]

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. 

[Wexnident]

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. 

That is why before investing and participating to a certain ICO, you must know the legitness of the project and most of all the team developers and the owner. I've noticed that there are more ICO than the recent years and i jumped to the conclusion that scams are everywhere, 90% of the ICO's might be a scam. If you got scammed, be sure to be wiser next time.

[GDragon]

The simple reason why is majority of ico dumped at the first day in the market and majority of it also encountered hard recovery. I believe also that there are only a few ico that can be resilient.

[JimmyJeri]

because there are a lot of ICO scams. It makes people lose their hope about ICO investment. To what i know, ICO investment is very profitable, that is the reason why people create more fake ICOs to earn money

[ocid]

if you talk about risk, I think that all areas of investment will definitely have risks, and perhaps the risks that will be faced in ICO investment activities is that when the project developed does not experience success, there are also many successful ICO programs that receive responses from investors in the Program The ICO and some of the factors that led to the ICO succeeding were among others from a development team that was experienced in running projects with several interesting programs, so I thought that in starting an ICO investment we had to examine the team that ran the ICO program.

[higgidave]

Among the factors discussed, I pick law to be very important  and relating to the topic . Law comes first above the last factor which is risk. Risk is talking about trust and trusting the team or project but I don't even need to trust when I can legally make the team pay for their omission/act, conspiracy, embezzlement and fraud. I just sue them  

Well every investment take risk not only ICO and we have to take chance in order to get success. We have to take step and manage the risk. Anything is possible in business.

[Altf4]

Ico investments is too risky ,this is because the Ico platform is still developing and promoting the Ico , and then you are buying or putting your investments in Icos , what if the project does not success then your investment might be gone so that is the risk in the Ico investments.

[esetop01tryba]

If you choose the project correctly, it can only be in the price of the token ! But if the project is a good product, team, partners, technology that is in demand by society it will bring a good profit !

[nak02]

Yes, even the project is legit and fame in the crypto if they don't have development or lack of it the project will be not successful to the eye of investors and users.

[darewaller]

First of all I do not think many people who have invested in any ICO would consider law before they go into it. ICO's could have problem with law enforcement but certainly the investors wouldn't because they are just sending ethereum and there are no other connection to them unless someone really digs deep which I doubt anyone would.

On the other hand anyone who buys into any ICO already knows that its a hail mary, it is either do or die, noone really trust any ICO to be an alright thing, they invest knowing the risks and say either this money will go to zero or it will be hero.

[RokokGudangGaram]

because the ICO is now often a scam coin and a lot of fraud too, so this year investing in many ICOs do not like it because of these factors and investors are also lazy to invest too

[yusupjatigumilar]

not only in the ICO in any investment, I think the risk will always emerge, it returns to us how far we can use it, but in my modest years investing in an ICO is indeed quite risky because the price tends to be low when it is first launched, far behind the price at the time we buy, but if you are patient and keep waiting it is not impossible you will get a big profit

[h0lybyte]

Not only ICO investments but also bitcoin investments have become risky since people got engaged in ICOs.
While analysing reports, the majority of investors have moved from bitcoin to ICOs and thus we see bitcoin decreasing market cap but soon things will again change and there will be equal interest among people for bitcoin and ICOs. Supporting bitcoin will  also be effective to ICO prices

[cryptothief]

unfortunately such investments cannot offer as much guarantee as before

Not sure they ever offered any guarantees, just that people expected the returns without any tangible evidence to support it. The market conditions in the second half of last year provided the ideal opportunity for companies to jump on board and cash in on new (greedy?) investor's naivety. They were very clever in covering possible negative outcome with an all encompassing terms and conditions. ICOs have always been risky, that's the game. Just now, investors are much more cautious, as any sensible/experienced investors have always been. So I agree with your general statement that astronomic instant returns are not generally expected anymore, although I'm sure many investors are still hoping that they will strike crypto gold.

[promich21]

Among the factors discussed, I pick law to be very important  and relating to the topic . Law comes first above the last factor which is risk. Risk is talking about trust and trusting the team or project but I don't even need to trust when I can legally make the team pay for their omission/act, conspiracy, embezzlement and fraud. I just sue them  

I don't have interest with ICO nor i invest with them but i just want to give my opinion that We have to take risk because you can't get success if you don't take risk.