ICO Investments Why Risky?

[gorkem]

All of the risks you listed do exist but there is no escape from them.I’m not afraid to take risks when investing. The only embarrassing moment when investing is fraudulent projects. Recently, fraudsters have learned to disguise themselves well. I’m sure that as soon as algorithms are created that exclude completely fraudsters the investment climate will improve.

[yitzjoe]

the biggest risk factor in ICO investment is determining decisions based on emotions and greed. because when we are greedy with ideas and the dreams they sell are irrational we will keep investing and eventually become a loss

[yusupjatigumilar]

investing in ICOs is quite a high risk, because it is not impossible to close the possibility after the funds have been collected, ICO organizers run away with the funds we have already planted, but in my opinion this risk can be minimized if an ICO uses escrow facilities, where the funds collected will stored on escrow, so that your funds are guaranteed to be safe, this will benefit both the organizer and the investor, there will be no suspicion between the two parties

[alex_gr_cc]

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.

I would never invest in a project if:
- after reading the white paper, I still do not understand what this project is about;
- if the team does not have specialized experience;
- if not at least one large investor.

[Wall_Streeet]

I can say from my experience that really worth ICO has now become extremely small, so it's better to just temporarily skip this area

[maculeth]

the value of the exchange can fall dramatically after launching the token to the exchanger. whereas at the beginning of the period, tokens usually have a pretty good exchange rate and after achieving a soft stamp and even a hard cap, the token can actually lose its exchange value. according to my personal experience, that's the risk of ico investment.

[kentrolla]

the value of the exchange can fall dramatically after launching the token to the exchanger. whereas at the beginning of the period, tokens usually have a pretty good exchange rate and after achieving a soft stamp and even a hard cap, the token can actually lose its exchange value. according to my personal experience, that's the risk of ico investment.

I have been through the similar situation wherein the value of tokens drops down to almost zero within couple of weeks from the date it hits the exchange but those ICO's which launch the token during the bull run gains more profit but not on a longer run.

[maarx]

the value of the exchange can fall dramatically after launching the token to the exchanger. whereas at the beginning of the period, tokens usually have a pretty good exchange rate and after achieving a soft stamp and even a hard cap, the token can actually lose its exchange value. according to my personal experience, that's the risk of ico investment.

I have been through the similar situation wherein the value of tokens drops down to almost zero within couple of weeks from the date it hits the exchange but those ICO's which launch the token during the bull run gains more profit but not on a longer run.

The fear of how much the investment is going to profit back. Scam icos do occasionally threaten the investors. Lots to talk about. Risk comes in when we fall under a scam ICOs. I do have an experience no it. I joined in a campaign called “c” project in December 2017. We contributed and waited for days, weeks and months for payment. The team just escaped. So we cannot avoid such scam teams. What we can do then is be pro-active to every ICOs we choose. Have a complete study on the ICOs. Basic study is more than enough like, details of white papers, projects, roadmaps, team member’s details, its existance in market and its reputation. These details would make you clear of an legal ICO.

[Harrow30]

A whole lot is now being put in place just as highlighted in ensuring genuineness and security of Investor's funds. Before now, some ICOs have been maliciously setup with the intent of carting away people's money. The checks and balances we have now, the loss of funds has been reasonably reduced.

[SlickMoTwoToe]

Nowadays many scam project was running an ICO, I felt pity to the legit ICO that can't get investor because of they invest i scam ICO and they doesn't want to invest again into some ICO even if the ICO was legit they didn't bother to invest, they are just investing into some hype ICO so that they can have short time profit.

[HarmonyA]

Every investment has it risk. It is left for investors to scrutinize it by accessing the risk to know if it would be profitable as portrayed. ICO investments are not left out

[alexhunter54]

Indeed trust is something that many ICO`s lack and is a very serious issue to be taken into consideration before investing as there have been many reports that people use the others as advisors and team members even though they are not.

[Ziskinberg]

Every investment has it risk. It is left for investors to scrutinize it by accessing the risk to know if it would be profitable as portrayed. ICO investments are not left out

Yes.If you want to make good profits from your investment,then you should take some risks.With ICO investment today,you should be more careful in choosing the right project because a lot of scam projects are coming out today.Although it's now becoming inevitable,atleast we should try to be more cautious about this.But i guess there are still some good ICOs left today that pays well its participants and investors.

[ELOCIN]

The fact is that too many ICO scams are there to fool people/investors. That's the worst thing that's going to happen if you fall in one of these scam ICOs. Moreover, not all legit ICOs will also become successful ICOs because some will also fail halfway through the ICO.

[reality18]

ICO investments like any other investment becomes risky when an investor invests blindly without any knowledge about the details of the portfolio or coin. Researching into the coin or ICO gives a clue on either to choose a short term or long term investment plan for the coin because not all coins are worth keeping for long term.

[Morning honor]

At this moment ICO projects are too risky because lots of this are scam, the investors who had not enough knowledge for this project without knowing the porfolio or the whitepaper listed of a whole team must might getting into trouble like those people who had bad idea to get easy money unto you or maybe to an investors thats why its too risky to invest for this time...

[nebiki]

Every investment has it risk. It is left for investors to scrutinize it by accessing the risk to know if it would be profitable as portrayed. ICO investments are not left out

of course when we choose a profitable and promising ico it is not easy especially when there are so many that end scam. To reduce the risk of our loss it would be a good idea not to invest everything in ICO.

[Vaculin]

At this moment ICO projects are too risky because lots of this are scam, the investors who had not enough knowledge for this project without knowing the porfolio or the whitepaper listed of a whole team must might getting into trouble like those people who had bad idea to get easy money unto you or maybe to an investors thats why its too risky to invest for this time...

Yes i agree on you.So investors right now should be more careful in choosing a legit project that will end up a successful and profitable one,and not a scam one.This may bring a big risks but if you won't take risks,you will not also gain huge profits.

[Btcjunpitz18]

For me, it is risky to invest ICO because you don't know the big impact after ICO ends. One reason also is the people behind the project (but not all project) making fake data just encourage investors.

[maydna]

I don't think that to invest in ICO will bring a good profit in the future as we know that today, many ICO has getting scam. And if you want to invest ICO, make sure that you know the details of the project so you will not worry about being a scam. The investment becomes risky because you don't know if the project can reach the success or not and you don't know how much profit you will get. So you need to be careful to choose the project and only use the money you can afford.