ICOs get more popular regulators are on the race to have brought under
regulation with some countries banning them altogether to shield their citizens
from being fleeced. China has banned ICOs with South Korea following Suit and the
US trying to bring it under regulation
Since buyers are anonymous money laundering by
terrorist organization is also possible. The cryptographically generated
address may hide the people behind the transaction, ill-gotten money can be
laundered in to the to the cryptocurrencies
prices are also highly volatile increasing the risks of loss with coins
registering more than 10% gain or loss within a single day. Some people tend to
manipulate the markets by pumping and dumping. Others tend to launch ICOs as a
get rich quick scheme to get their hands on investors’ money and the project might
not be successfully completed.
digital tokens might be priced higher basing it on speculation without
considering the underlying economic utility. Unsustainable prices would
eventually burst resulting into loss.
there are high chances of success by investing in an ICO, there are also great
risks involved. If the project fails to take off you may lose your hard earned
cash with almost no chance of reimbursement. The other risk involved is that
since the ICOs are mostly unregulated fraudsters have a chance to take
advantage of that as most investors are ignorant on how to spot scams. There
have been scams already who fleeced unsuspecting investors. One needs to
cautious enough not to fall for such scams.
ICOs floated have been selling out a few minutes after launch depicting the
level of enthusiasm and confidence the people have on them. As most ICOs are
based on the etherum network this has also lead to higher transaction fees and
coins offered in an ICO are modestly priced which means you can almost bet on
them to rise as soon as the coin begins trading. When an ICO is been floated
that means you have got a chance to buy them at very low price to make a
killing when the values surges.
have brought democratization of venture financing that was previously the
preserve of the Exchanges. Ordinary people have had a chance to invest in a
decentralized monetary system. The previously launched ICOs have seen marvelous
levels of success that has led to emergence of ICOs and almost all of them have
been successful. This gives you a more optimist view of the ICOs and the
growing uptake of crypto currencies among the ordinary population.
has been a lot interest generated by this that has resulted in many people
investing in crypto currencies. While this growth has been largely being based
on speculation chances for sustained growth are still visible.
investors are attracted to it mostly for their liquidity. The values of
cryptocurrencies tend to rise faster than most investment opportunities. The
year 2017 has been the year for digital coins with almost all of them gaining
value in unprecedented level. Bitcoin alone has experienced meteoric rise in
value from less than $1000 at the start of the year to almost a peak of $20,000
How Much Gain Can One Really Make From ICOs?