Lately, it seems that ICO's (initial coin offering) are a hot topic in the crypto space which ended last year in the billions in the amount of money raised for these projects.
So the game goes like this you find an ICO get in on the pre-sale which usually costs anywhere from .10 cents to $1.50 per coin/token wait for the exchange to open and dump the coins for a profit of anywhere from 10x to 30x depending on how long you hold. Then it's on to the next one, dump, rinse and repeat. (most of them like to claim they are on a blockchain or the latest one is that they have some AI Trading BOT that can speak 10 languages and bring you coffee!) lol
The flip of the flip side to these ICO's
Investing in these ICOs is no doubt riskier than investing in an IPO but if the huge rise of Bitcoin and other Coins is anything to go by, is it a bad idea to invest a little in a good solid ICO? Well from my experience yes and no. When I was going through a rough time I put no more than what I could afford to lose in some really risky ICOs and some in more solid ones.
Luckily I made out great on all my investments but there are a too many of them out there right now just looking to scam you and this is becoming a problem. It's like the Wild Wild West out there with a new platform opening up every day it's getting harder to tell which are scams and which are legit. My experience with these over the past few months tells me most of these ICOs with lending platforms will eventually shut down and run off with everyone's money. Some will let you make a profit while others will just exit scam right out of the gate. Being in the crypto game could be a gamble if you go down this route, so I would say if it seems to good to be true stay away.
Regulations on ICO's
I think we need regulation for these ICO's not only because of whales dumping and taking massive profits but because of all the scams going on at the moment. I mean anyone can start an ICO or an ERC20 token with a couple hundred dollars, buy a web template and walk away with millions. Something has to give here! China put a ban on them. Now, I don't think we should ban them but we need some sort of regulatory system to keep an eye out on these companies.
My Take
Like I said at the start I took a chance and made profits on a few risky and solid ICO's but I was in a tight spot at the time and took the risk. (I am crazy like that and that's just my experience with my money) I would say if you are involved in making money this way then you know the risks that come with them. As for me, my ICO days are done. I was thinking a little deeper and even if you invest in one that lasts a couple months and you make all your money back but someone comes in on the same month with as little as $100 to invest and the company exit scams I would feel really bad and would not want to be a part of a company that would take advantage of people that way. Besides that $100 in some countries is a lot of money.
Again I am not saying they are all scams but most of the lending and staking ICO's won't be around for too much longer, especially when regulations come in. Well, that is my hands-on lesson on what I learned about ICO flips last year. I am just your ordinary single mom who learned a lot about crypto in 2017 but still has a long way to go!
Be smart, do your research and stay safe. In the end its your choice and I am by no means a financial expert or adviser. I am just someone who has dipped her toes into a few and got out alive! At this moment in my life, I would rather hold Bitcoin, Eth, BCH and let it ride up.
What are your thoughts on all of the ICOs? Please DO NOT leave any referral links in the comments sections.
Steem on!!!
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