It is also an idea of selling personal information. Those projects will try to sell our ID to get a certain amount of capital and invest in other things. But what really annoys me is that after we provide KYC, the project owner delays the distribution of the token and it seems that they no longer respect us. This really makes me crazy and I want us to create a topic to talk about this injustice.
No need to worry if you follow a project that has a high reputation and is transparent. Providing KYC is already at your own risk but without that you also get nothing from the project. So it's up to you to choose, which is why people avoid projects that require KYC.