Crypto Coins: Research: Why I don't invest into ICOs anymore

  • Tuesday, 19 June 2018 16:04
Why I don't review/invest into ICOs anymore Market situation Market has been in the downtrend since January. While in downtrend the more stable investments are usually doing better (Bitcoin, Ethereum). This means that Bitcoin and Ethereum are more likely to retain more value (even when losing against USD) when compared to ICO tokens. Oversaturation More and more ICOs are introduced with many ICOs that basically do the same thing as already established coins. Why would people invest something that is just starting instead of already established brand with development team that has been working on the coin for a long time? More competition like this means there is less demand for the tokens introduced in the ICOs which affects the rate of return Scams and poor quality There are more scams, obvious cash grabs and poor projects than ever since people are trying to quickly profit in the cryptocurrency hype. Because of that it's difficult to find legit projects with bright future. There were several successful scams in the past where the people behind the ICO were able to run away with investors money which further increases FUD (fear uncertainty, doubt) and that means less investors The risk/reward ratio is quite often not worth it since finding good ICOs is super hard and there's also a chance of investing into losing project. Returns Majority of ICOs nowadays actually lose money when compared to fiat/ETH/BTC so considering research and the investment takes time you are esentially wasting time to lose money. Out of the recent projects only few actually generated money with majority losing against BTC/ETH and usually fiat if the investment took place after January: The reason for bad ROI is a combination of all previous points and currently it's unclear even if better market conditions would change much. Conclusion Nowadays investing into ICOs is risky, takes time for both research and investment process and rarely actually generates money. In most cases the money is actually lost which defeats the purpose. There is simply no reason to invest into ICOs unless you really really like the ICO (superb existing team, great token economics, interesting and unique idea etc) and even then it might not generate a nice return. Because of that I have also stopped doing reviews - don't want to endorse something that will lose money. Once the market is bullish the situation might change but I don't think we will see the x10 returns like we did last year anymore. Follow me on social media: Telegram: https://t.me/crypto0coins Twitter: https://twitter.com/Crypto0Coins Facebook: https://www.facebook.com/crypt0coins/ Steemit: https://steemit.com/@dmae You can also use my referrals: Coss referral: https://sso.coss.io/api/invite/XJZ89O9XRU Binance referral: https://www.binance.com/?ref=10136785 Coinbase referral: https://www.coinbase.com/join/580f4ae28bfa31697d9a8f7c I no longer accept donations! Love you but keep in mind that this is not a financial advice!

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