Hello fellow community members,
Recently I saw lots of people announcing new altcoins. They're planning to launch ICO soon. But I was wondering if we should invest in ICO with proven business which will reduce the risk of our investment or go big with ICO project that we believe in but it starts from zero?
The trend of ICO is everywhere and lots of SCAMS is happening. Therefore, viewing ICO from risk management perspective is also important. What do you guys think?
"Price is what you pay. Value is what you get." - Warren Buffett
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It is true that it is better to invest with a proven product or business but we should also remember that some good ideas that can contribute in crypto needs a fund. ICO is suppose to be a collection of fund to develop a certain project. Just so happened that scammers use this process to collect money and run.
The problem with investing in a proven product, service or business is that its valuation tends to be incredibly high, people see that they already have something going on and they invest all their money there, not thinking that by doing that they will be reducing their own profits because everyone is doing the same, that is why even if it's more risky to invest in a project that has not done anything yet the profits can be way bigger if you are able to select the right project.