Anyone knows the answer to this question ?
Hello guys,
I have been asking myself a question none-stop recently regarding some ICOs and I hope someone can give me an answer.
First, the context :
ICO of X company :
No Discount during the ICO over the date of the investment (for exemple some ICOs offer a 30% discount on the token if you invest on the 1st week of the ICO, 15% on the 2nd week and 0% for the rest of the period).
No Bonus on pre-sales (same as above but in terms of quantity of coins, +20% of token for the st week etc...).
Not a scam, strong team, public figure, strong advisors etc... etc...
They have a prototype, roadmap, white papers etc...
Basically, they have everything to succeed
So here is my question, how can you loose money by participating to this ICO when they get listed on the exchanges ? Since there are no bonus and no discount and we are 100% sure it´s not a scam. What are the risk (beside them being hacked) ?
Have a good day !
The truth is there no way one can be 100 💯 percent sure an ico is not a scam except you are one of the team members, you can rather say the risk of loosing money is low, and back to your question, one can loss money if the project is not one that catches people's interest/attention, one can also loss money if the project team fails in any way to fulfill a particular campaign promise or promises, use athourship as an example, during their ico, people were asked to refer other people to sign up for their newsletter and get 75 ATS token free, at the end, thousands were not paid and that alone made the whole project look like a scam, those who invested in the ICO are yet to recover their money as price of token now is highly below ico price.
Thanks for your answer ! Well in this particular case, it´s really safe to say that there is no way this is a scam. What i am trying to understand is how if you participate to this ICO, can the value of the coin go down once it gets listed on the exchange ? I don´t see how is this possible.
The biggest risks is that they will be passed by competition. Being first to the market is a very big advantage and you need to look into the particular part of crypto space which they position themselves in.
Another risk is delayed or aborted development - which kind of connects with the above risk. Having white papers and prototypes is one thing - but being able to deliver to end and communicate with the market is something else.
But as long as the coin gets listed, it´s a very safe bet don´t you think ?
That depends on your time frame - lot's of coins are getting delisted due to low trading volume, and just disappear.
If you just want to make a flip then you need to look into the coin allocation and gauge if there could be any unmet demand after the ICO.
Thans ex-pro, that makes a lot of sense !