There appears to be an ICO frenzy across the Blockchain industry. Everywhere you look, a new product is created with a corresponding ICO launch.

Advertisement :

While there are genuine products and judiciously executed ICOs, there have been reports of insincere setups that only succeed in reaping the masses of their wealth.

Industrial stage of development

Despite noting this as an unfortunate development, Helium co-founder, jason Cassedy identifies the ICO scenario to be common with other developing industries.

Advertisement :

According to Cassidy, whenever a new industry reaches a certain level of market penetration , the floodgates open up and a host of actors enter into the space. While many of these individuals have good products or services backed by good intentions, human nature dictates we will see a mix of participants.

Advertisement :

Cassidy notes that the bad actors take advantage of the illiteracy of their victims to exploit them and steal their resources.

Cassidy says:

“Not every one of these people will act in good faith, and whenever there exists a collection of uneducated investors you can be sure the charlatans are lurking close by.”

In order to be safe from bad actors, Cassidy advises new investors to ICOs to keep three things in mind when contemplating investing:

1. What is the technology/platform/currency addressing?

There must be a clear ‘need’ that is being fulfilled, a market for the solution and ideally the long term vision to get it there. Read the whitepaper, look at the roadmap and research the industry the currency and Blockchain are addressing.

Advertissment :