RE: ICOs are so popular.. They Got a 100% Dedicated Magazine Now!
I agree that ICO's are for sure a bubble, but I wouldn't say the dotcom craze takes it far enough.
I'm not just saying this to be disagreeable but ICO's look more like the digital equivalent of stocks, just like Bitcoin was the invention of "digital money" a company Token that pays out a share of profits as a dividend and has a price per token, tokens outstanding and a market cap on an exchange looks and talks like a stock, however with one major difference: there is no regulation yet, and there are no past financial like income or balance statement to go over. Because of this I'd say ICO's are more like the rise of the early stock market since there was still "regulation" during in the dotcom craze. Tokens are Stocks 2.0 and it's the fucking wildwest out there.
So what does this mean for investors? Be CAREFUL with your money. If you're not an experienced investor, you're highly likely to lose everything you invest.
By experienced investor I mean: able to separate the hype from the details.
You MUST be able to know, ask and answer these questions:
- What problem is this ICO solving?
- Is there demand for that problem to be solved?
- Can they maintain a sustainable competitive advantage?
- Is the business model understandable and will it create profit?
- Even if the business makes sense, does the team have the capabilities to be able to make this happen?
- The last and most important question, can you afford to lose this money?
If the answer to any of the above questions is no, then you should probably pass.
Even though the risks are high, there's still HUGE profit potential for the few ICO's that will be big winners, but you'll have to be both highly skilled and a bit lucky to win. Most people will lose almost everything they invest. Even experienced people will lose. Stick to the list above, answer it honestly, and it should serve as a good general guide for investing.
Great answer. I'm even going to copy-paste this whenever I see someone asking if X or Y ICO is worth investing on.
Wow, I'm honored, thank you. :)
Excellent reply. You should have just written this as a post. I completely agree.
Good idea. I'll make a post on this topic. Thanks for the idea.
Thanks for this. Those 6 questions are going right into my evernote so I can refer to them for my next token purchase to make on an ICO. I have just started and I don't make money but I am extremely happy to operate in the crypto ecosystem so that we can escape the tyrranical and biased policies and regulations that come with the current fiat and stock trading system. It is like the wild west indeed but I would gladly lose all my money in a system that is trying to provide solutions for the future rather than ones that perpetuate unfair ones from the past. Don't put all your eggs into one basket and try to find things that get both birds stoned at once AKA something that helps your conscience AND your finances at the SAME TIME!
Give this man a 100 upvotes! Spot on with the breakdown.
I feel ICO investors suffer from something like 'confirmation bias' in TA. They want to win so they are won over with the upsides, while totally underestimating the downside picture!
Great reply !!!
Short and full answer for a hard question !!!
Be or not to Be ???
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