When it seems that everybody around you has gotten rich by investing in cryptocurrency, the temptation to invest in initial coin offerings (ICOs) can be almost irresistible. After all, even though the major coins still have growth potential, they are already expensive, and alternative coins with solid applications in various industries will most likely hold the most value in the future.
It’s easy to buy into an ICO’s promise, whether explicit or implied, that investors who enter early and buy coins while they are still cheap will be able to sell them later with a tremendous return. The tension is reaching its limits, especially now, when, I believe, the cryptocurrency market is on the verge of the next boom.
The rally has been intense, but be prepared for a more extreme ride. Everyone who missed the opportunity in the 2017 hype and was afraid to invest in the first quarter of 2018 as the market was going down is now ready and looking for good projects.
The plain truth is, while ICOs have democratized investments for the masses, they don’t offer automatic profits. In fact, news.Bitcoin.com recently reported that nearly half (46 percent) of the companies that launched ICOs in 2017 have failed already, and another 13 percent seem certain to fail soon.
There are several reasons for this. First, the ratio of quality projects that will bring good returns is extremely low in the ICO arena. Read more from venturebeat.com…
thumbnail courtesy of venturebeat.com