ICO Investments Why Risky?

[leavolnhals]

One more thing that has a lot of impact on ICO projects is that they offer a faint idea and the market is bottoming out. there are too many negative impacts for ICO projects. But risk will come with great profit. If you are good enough to know what you should do, invest in really potential ICO projects.

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[rickyNmorty]

I have not get good luck in investing into icos and the few one that I have invested is not doing very well in the market.  Icos investments is very risky and many investors have lose significant amounts of money.  I don't think we can really succeed the ways people and investors are losing money through icos scam projects.

I hereby agree that this is really true. ICO are risky because of the projects that did not succeed. In short the plans and projects are just waste. That is why probably it creates more risk. In addition are those scammers who fooled investors for them to generate money.

[millensharon8]

Because many irresponsible people want to take benefits from crypto growth and they dont have real project. Some ICOs very slow when want to land on exchanger and it make investor waiting too long.

Regulation of course would really be of help with things like this. For instance, when the Centra token team was arrested based on the fact that they deceived their investors somehow when they do not have a specific product and then claimed they had it, and that really made things go awry for them at the end and then we saw the project dead.

Investors need to know how to always dig deep on the market they want to invest in first which is highly important at this stage. At least until when we start seeing some laws in place.

[OrangeII]

One more thing that has a lot of impact on ICO projects is that they offer a faint idea and the market is bottoming out. there are too many negative impacts for ICO projects. But risk will come with great profit. If you are good enough to know what you should do, invest in really potential ICO projects.

for now, most ICOs don't have prices that match their whitepapers, or their targets. whereas, if you think back, the softcap they target can make the price normal, but for now I think many ICOs don't care about softcap, and always extend the ICO they make themselves. well, because that's the ICO at risk.

[kidoseagle0312]

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.

Well, that's the disadvantage of ico project in this business, But I agreed that in every investors they must prepared most of the time to lose money in terms of investment. That's the meaning of us as being Risk taker. This is business, we need to put in our mind that before you get involve yourself in the project you must accept earlier that you are already lose even it is not yet happen. Especially now, most of the ico bounty campaign run in a short time but the ico will run for a long time were most of the time they extend it.

[chrisculanag]

Risky because you didnt know if this project still continuing there road map plan . I see some success ico that has a good plan. So before we join in the ICO first is thinking or researching about the project and always updated in the project. 

[Ranly123]

ICO projects have entered our lives with an incredible pace last year. People who follow the market very closely through these projects have very serious boilers and users who do not follow the market too could only hear information about projects. This investment sector, which saw a significant increase in the last year, managed to earn significant investments in the first quarter of this year, but unfortunately such investments cannot offer as much guarantee as before and cannot provide as much profit as before. Everyone can clearly see the end of the era of being rich by investing in ICO. And what risks does this investment vehicle have? Why is it not so favorable or favored by many investors today? Have you ever wondered the answer to these questions? In this article, I will tell you the answers and the reasons for all these questions.

Virtual Product

Virtual products are the first to be trusted or unreliable in ICO projects. The point to be mentioned with the virtual product word here is the expectation of profit margin return with the sale of a real and non-existent product. A token (product), which is not yet in the market, is sold to investors with a certain value. The investor thinks that when he buys these tokens, he will sell them with certain values and in some projects, he cannot go beyond imagination from some projects. In short, we are paid for a product that does not have any value yet and we think that we will sell it more profitably in the future. In this case, successful projects do not take place in some projects or completely explode in the hands of the investor.

Fancy Dreams

It is another risk factor related to the topic mentioned in a higher title. Once the project team has set a price for its product, it also tells its investors the price to sell. It is wrong to make such a clear value estimate for a product that is not yet completed or a product that has not yet been completed. As a result, each project will be successful and reach the target price and it can pass the price is not a rule. For example, let's say we get 10,000 X-Tokens for 1 ETH. The project team is going to sell this imaginary by stating that the value of these 10,000 X-Tokens will be 3 ETH. Then, we start to dream with this money. The big day is coming, and without any mishap the project is achieving success. In this case, the dreams sold to us become reality and we are doubling our money (who knows, maybe more?). But in case the project is not successful, our money is either decreasing or completely disappearing. In this case, the dreams sold to us are frustrated and have no value. This is why ICO projects sell us a dream when they actually offer investment opportunities.

Discenterless Management

The fact that many ICO projects have decentralized management is another risk factor. Since there is no center, the product to be produced or the imagination sold to us is open to many speculations. For this reason, our investments can be seriously valued with severe changes and serious losses may be experienced. It is important to note that this risk factor is present in many types of cryptocurrencies.

Law

Undoubtedly, I think many people know or predict this risk factor. In the crypto money market, unfortunately, there is no formal rule-of-law or formal legal framework (although not a few states try to take measures). 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. It is for this reason that many litter projects have recently made ICO and have made serious gains by making big picks.

Risk

Another risk factor that can be linked with an upper substance is trust. Since there is no legal regulation in this market, we can face many trust shortages when investing. Therefore, doing a detailed research on the members of the project team before making an investment will help us achieve a very useful result. With this research, the problem of trust will be solved and at least one risk factor will be reduced.

What is the biggest risk factor that makes you feel uneasy when investing in ICO? I am waiting for your answers with your explanations short or long.

It's too risky due to it is just the start-ups of a coin which gives no guarantee that it would be successful or it will grow it's initial price when it goes to exchange. But as we all know that taking bigger risk will give a bigger reward in return.

[Nhebu]

ICO investment is too risky because many scam projects are existing today. These projects are result of the greediness of the people to fool people who really wants to support their ideas. Unfortunately, ICO that are genuine are affected because of this crime. And because other investors keeping safe their capital, they often invest for an ICO. Therefore, wether it is a scam or not, there is 80% chance of failure.

[Capt00]

Risky because you didnt know if this project still continuing there road map plan . I see some success ico that has a good plan. So before we join in the ICO first is thinking or researching about the project and always updated in the project. 

What you mean by having a good plan? Even though they were having complete documents like white paper or roadmap but one thing is having a fake team, all I can say is that scam project. But yes you can follow them their progress if they are legit one and don't rely only on their platform sometimes they have fake documents and probably fake teams or devs. Further researching on the project that you planning to invest in a good start to lower your risk.

[snaper14]

yeah  ICO  is  very  risky  because  there  are  lots  of  scammers  and  we don t recognize  them  and  one  more  thing  there  is that for  ico  we  have to  make lots  of  research  first  and  then  to  invest  otherwise  you can fail  directly.

[maarx]

It will not be a risk taking investment when you have done a complete study on the ICO you are about to invest. The study will completely make you clear if the ICO is a scam or a legit one. This is a basic attitude we should have as we deal with money. Profit is very important but thorough study on the ICO background you wish to invest is as important as seeing profits. Its bit hard at the beginning to sit and have a research on the ICOs, but when you make it as a habit then, it will become your routine practice. You really indeed need it to practice and why i am saying it here is, now a days even the legit ICOs who come get listed on exchanges, do not meet up their ICO price.

[wuvdoll]

Because many irresponsible people want to take benefits from crypto growth and they dont have real project. Some ICOs very slow when want to land on exchanger and it make investor waiting too long.

Irresponsible indeed and I must say it is just something we will have to get accustomed to until the space becomes regulated.
As it is usually said, in a lawless country, there is no sin, and this space is more like a lawless space, and no one considering where such activities would land them if they ever try it in the real world.

I still so much believe that with regulation a whole lot of things would change. ICO investments will always be risky at this point for those who are actually not doing proper research before they end up in a project. That idea in the mind of scammers that there are still gullible investors is what has been keeping them going and until we start having that out of the way, it would be hard not to keep seeing them until we see the space being regulated.

[Kusnechik]

ICO Investments is a risk, since it is not known at the start how the market will behave and whether buyers will be interested in this asset.

[bangkit tri]

It will not be a risk taking investment when you have done a complete study on the ICO you are about to invest. The study will completely make you clear if the ICO is a scam or a legit one.

indeed most difficult is to choose ico who is truly qualified. because there are a lot of ico fraud, which makes investors disappointed. therefore we still have to learn to investigate ico who is healthy

[DeluxeJR]

Market it down and this is the reason why ICOs are risky. If a team has decided to raise a specific amount of ETH with a certain fiat price and then ETH is valued lower that means that they are not able to cover their expenses and they are out of plan.

[Dilerium90]

I have been following ICO projects since the beginning of their appearance and the selection of 100% successful projects is very small. For example, almost every coin after the end of ICO can be bought on the exchange cheaper than during crowdsale.

[ngoisaobenho1998]

I think there is always luck with the risk. Therefore, when investing in a project we should carefully study the idea of the project, the level of application of the project.

[nebiki]

It will not be a risk taking investment when you have done a complete study on the ICO you are about to invest. The study will completely make you clear if the ICO is a scam or a legit one.

of course choosing a legitimate ico or fraud is not easy, sometimes what we consider promising and good can end in fraud. indeed when we join ico it all depends on our luck.

[akiho yoshizawa]

because there is no binding responsibility, investors are still looking for any collateral and this is still subjective like buying a cat in a sack. If the ICO promotion is clearly regulated and not all of them can qualify, it won't be too chaotic now. The emergence of a too messy ICO can make many fraudsters infiltrate because there are no specific standards and it seems that it is still too easy to make.

[GregH37]

I have not get good luck in investing into icos and the few one that I have invested is not doing very well in the market.  Icos investments is very risky and many investors have lose significant amounts of money.  I don't think we can really succeed the ways people and investors are losing money through icos scam projects.

One has to do a lot of research before investing in ICO's, its true that there are scammers out there who are pretending to be the real deal, only for investors to lose their money after investing in the project. IMO, there have been successful ones which has deepened the pockets of investors and more upcoming ones which look promising. But if you are tired of ICO's there are still other ways to invest in blockchain, for example, consider Hooch, not your typical ICO but the concept is wowing, they are tokenizing the rewards ecosystem by giving their users Tapcoin and discounts off their drink purchases, hotel bookings and access to reservations at top restaurants. And because Hooch is already an existing platform which is embracing blockchain, it is something worth investing in.

The main reason why ICO has not been very favorable for a lot of people is because they are not always with the mindset of at least trying as much as possible to understand what they are getting into, doing some research and some proper digging before investing in anything and all they are just looking at is the idea and then they hop in expecting some huge benefit from that in the long run.

To get something in this life and make it worth it, you have to be diligent in what you are doing. There is no easy way to anything, and the repercussion of not doing due diligence is what has resulted to a lot of people being victim of scams.