Are initial coin offerings (ICO) on their way to replace traditional VC funding for startups? Well, you shouldn’t hold your breath. Currently, they are still a niche option for tech-savvy investors who are willing and able to do their own due diligence. And while traditional investments are not risk-free, ICOs are significantly more risky in at least one respect: The likelihood that the ICO team will just take your funds and run.
But, as they say: No pain, no gain. If you feel you can accept a somewhat higher level of risk than in traditional currencies (or fiat currencies, in crypto-speak), then taking part in a promising ICO can be an interesting addition to your portfolio.
What should you look for in an ICO in order to minimize your risk? Find out in my new article at born2invest: Good or bad investments – What to look for in an ICO.