If you have already entered the cryptocurrency world then you'll probably know what an ICO or Initial Coin Offering is. For those who haven't, it's basically when someone launches its own token and sells it to other people. In this post, we are talking about the Ico investments and their dark side.
Before we start, remember this: Always do your own research. If you run into a scam Ico, you may lose your money
- Ico's are incredible investment opportunities, a token that is worth nearly nothing can grow into the hundreds. An example of this enormous growth is Bitcoin. A while after Bitcoin was launched, the worth of 10,000 Bitcoins was used to pay two pizzas that were delivered by Papa John's. That money that was used to pay two pizzas, at the time that I'm writing this, it would have a worth of 41.7 million USD.
1. Economic Problems: Don't throw your money away!
- Well, these token sellers sometimes come up with a story that can sound incredibly real. But you have to be careful because there are very creative people in this world. Yes, they have a very professionally written content and the white paper is interesting, but still, watch out everyone can write one at the bounty campaign of the project. To prove you this, I have written some myself. Inspect very carefully the content, in the case that it is a scam you may be just donating money. This doesn't mean that every Ico is a scam, I've participated in some myself and if you are planning an intelligent strategy it can be a very lucrative investment.
2. Legal Precautions
- Some of the Ico's can have something Illegal or not perfectly in law. At the moment where you buy the token, you might become a target for the SEC. Always research very carefully the Ico you are participating, and if it seems you a little suspicious then I recommend to do not invest in it. And you should take the SEC seriously because they can get you into serious trouble. But you should only be worried if there is something weird going on with the project, if not then enjoy your investment.
Finally, remember to always inspect the project that you are investing in. Thanks for reading, follow this account to stay informed.