Quote from: Retro6 on September 27, 2018, 11:24:24 PM

Quote from: Existence on July 19, 2018, 11:06:47 PM

One guy wrote a post on the Internet. He invested in an ICO and did not know what to tell his wife because the money he invested were borrowed from a bank and the ICO failed. Nobody wants those tokens anymore. So, what should this guy do now, in your opinion?

When we were launching an ICO I spoke to almost all of our investors. Not with all of them but with the majority. My message was simple you should invest the amount of money you are willing to lose. I kept saying this over and over again. I even refused some of the potential investors. Not many, but still I turned two or three of them down. It was not about ethics. It was not about morality. It was not about reputation.

The thing is that one of my businesses is a detective agency. Thus, I saw many malicious fraud cases. People say a project will be a success and then some force majeure happens. This is when infuriated investors hire detectives to find the fraudsters. We conduct a thorough investigation on the case and see that no one actually intended to cheat at first. It just happened.They just did not calculate their own strength. Did not foresee all the possible outcomes. In fact, willful fraud cases are not as common as single cases of stupidity. But the outcome is always the same court cases initiated by the investors and jail for the stupid entrepreneur.

Some people wrongly assume that it is possible to flee there were cases when we had been searching for 2 years but managed to find people in the end. Whatever large amount of investments a person gets, they will lose it in a couple of years if they have no experience of managing such sums. Moreover, they will end up in a much worse situation than they were before.

Knowing all this, I have decided to work only with those investors who were ready to lose money. Even though my thoughts are unlikely to be heard, I highly recommend that all ICOs adopt this policy. We all play a very high-risk game: 9 projects out of 10 fail after collecting money. Different people, including ones like the guy I was talking about, invest into projects; they invest money borrowed from banks. These people are stupid. They are not ready to be investors. The ICO team has to explain that investing is out of their league. Maybe they are just not suited for this.

However, ICOs do not do this. As a result, after crying his eyes out, our guy will get angry and file a report to the police to initiate criminal proceedings against the ICO team. The team will have many unpleasant years ahead.

So maybe it is reasonable to prevent such situations? Maybe saying guys, we can fail at the beginning makes perfect sense? Investing credit money in an ICO is a bad idea and this is why we refuse you?

The perception of reality is different amongst many people and especially when money is involved. It should be common sense for any investor to understand the risks involved in any startup. This is basically what an ICO is, a startup. Most startups fail, some have varying success, some are wildly successful...and the difference between all three could merely be time. Amazon for instance was going nowhere for years until just fairly recently. Now it is one of the biggest companies in the world.
As an investor you need to answer some serious questions:
1. Am i in this for the long term or short term?
2. Am I actively or passively investing time/money into the project (personal responsibility)
3. How much am i willing to lose
4. Will i conduct my due diligence in the project.

Number 4 is often the most overlooked question. Do I as an investor understand the product i am backing. Do i understand the risks, do i know who is running the company/project?

There are too many people shirking personal responsibility in life and this is the same thing with investing.

that's a good statement. questions and logical thoughts. it's very compatible. an investor with this kind of approach is the real investor who knows what he wants. such questions enable us to better understand project and investment. thank you.