If 2017 is deemed “the year of cryptocurrency,” then 2018 is most certainly “the year of ICOs.”
As it becomes increasingly easier to create ICOs, more of them will ultimately end in failure or fail to maintain their success. According to a survey from news.Bitcoin.com, 46% of all ICOs in 2017 either failed to launch or are currently no longer in business following their launch. Expect this number to rise in 2018, as more scamcoins seeking colossal gains are launching in an attempt to secure investments from gullible investors.
Not only are ICOs unreliable, they are also a generally unsafe investment given the significantly higher risk of scams. Investors who pool in Ether or Bitcoin during a funding round more often than not end up with seemingly worthless tokens following the failure of an ICO. The fact that you’re not guaranteed anything should already serve as a warning flag for investing, especially if you aren’t fully confident in the value of their company.
If the risk and unreliability isn’t enough to scare you away, be aware of pre-ICO rounds. Usually, pre-ICO rounds are held to pool in large sums of capital to generate more interest or hype before the actual funding round. The best deals are usually found in the pre-ICO rounds, indicating that you won’t be receiving the best value for your investment. Finding and investing in a successful ICO for 2018 poses an arduous task, considering how many fail or are simply scams, but boasts the highest returns for those that can actually find success.
Conclusion: Approach every ICO with skepticism. If a majority of ICOs end in failure, who’s to say that the company you are about to essentially donate to will be any different? Only invest in ICOs if you truly believe that you’ve done everything in your power to research them and make sure they are reputable and have real potential.
Note that Faucethub does NOT endorse any ICO but you might find 3rd party advertisements for a ICO at Faucethub