Investing in ICO -5 Risks You Must Bare in Mind

ICOs (initial coin offerings) are an way to gather capital to finance an idea, although unregulated attracts many investors.

As it is unregulated, there are risks.

Investors of all kinds are jumping on the ICO train, this article is to make awareness of ICO risks.

Risks on ICO Investing

1 –  ICO documents without a legal basis.

2 – Fear of missing out. This feeling reduces the capacity of contributors to make rational investment decisions.

3 -There is a difference between creating a crypto project and a real world business. ICO organisers with sky high crypto credentials are not necessarily the best

4- Many Token issuers reduce their communication with the token holders after the ICO and every day that goes by without news, reduces the value of the issued tokens.

5-Many projects underestimate the Regulatory challenges and financial licenses needed in order to convert their business model into a viable legal business.

Please check our other article on Jonh McAfee Blockchain and cryptocurrency

Did you learn about ICO Investing risks?

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