Risks for selling ICOs and token: understand the shaky world of cryptocurrency
The growth of cryptocurrency caused a new era of innovation, entrepreneurial spirit and financial freedom. However, with great power, a great responsibility, and the cryptocurrency world remains a risk. One of the most common traps of the first investors is the initial offer to sell coins (OIC) or token. In this article, we are immersed in the risks related to the sale of ICOs and token, helping to make well -founded decisions by investing in the cryptocurrency market.
What is OIC?
The initial currency offer is a type of title that is offered where a company issues their own cryptocurrency tunes to raise funds for their future operations or projects. In exchange, investors will have access to these new currencies or chips, which can be used for various purposes, such as negotiations, investment or even investment.
Risks related to ICO and token sales
While ICOK can revolutionize the way with fundraising and thinking about investing in the cryptocurrency, there are many risks related to these events. Some of the most significant risks are as follows:
- Security Risks : Cryptocurrency safety is not as robust as traditional devices such as actions or titles. As more and more people use digital coins for everyday transactions, hackers and computer criminals have a better chance of stealing coins.
- Liquidity Risks : ICOs generally have no liquidity, making it difficult to sell tokens if you have to access funds. This can cause significant losses if the market falls or if the token is less valuable.
- token False statement : Many ICOs have been token by Token’s year -on -year statements, where companies claim that their tokens have unique qualities or used in a way that does not really exist. Investors who buy these tokens at the beginning of OIC can have useless coins later.
- Regulatory Risks : Governments and regulatory bodies will continue to find how to deal with cryptocurrencies, leading to investors’ uncertainty and risk. Changes in regulations can affect or even make them useless.
- Market volatility : Cryptocurrency markets are notoriously volatile, prices flow rapidly as a result of feeling and market news. This can cause significant losses if you invest in a token that is not supported by the use of the use.
Risk types related to token sales
Although ICOs and token sales have general risks, the specific risk of these events posed a variety of specific risks:
1.
- Lack of use
**: If a token has no clear use or usefulness, it may not maintain its value even after the initial sale.
- Regulatory Risks : As mentioned above, regulatory changes can affect the value or viability of a given token.
Protect yourself from OIC’s risks
Although there are risks to ICOs and token sales, there are steps you can take to protect yourself:
- Make a search : Before investing in any cryptocurrency, examine the underlying technology, use and team.
- Check information : Check your corporate information, including your website, social media and public records.
- Diversify your portfolio : To minimize risk, distribute your investments into various assets.
4.
- Be informed : Be up -to -date with market news and trends, but avoid making impulsive decisions based on emotions.