A few months back you could just create a fancy website, confusing white paper & empty promises to raise millions within hours. Most of these ICOs have failed or going to fail soon. One big example of it is Tezos ICO. They raised $232 Million in their ICO & don’t have anything developed till now. Now it is on the verge of falling apart with lawsuits & fighting between the founders & foundation. The founders neither have any experience in software development nor any leadership qualities.
By raising $232 Million you would think that they would hire the best talents in the world to deliver what was promised to the investors. But nothing of that sort has happened & now the founder couple are fighting to get more money from the foundation. They don’t care about the investors or technology. They are just greedy scammers. Luckily I did not invest in it, since it was very clear from the beginning something shady about them. They are based in the US & forming a foundation in Switzerland. All so that they can escape the SEC regulations & benefit from taxation & regulation laws of Switzerland.
Yes partly. But in that time, the technology was so new that everything looked promising. However the lessons, that we should learn from Tezos is now that our money is too valuable to waste on some scammers with no product or prototype. In the Tech World, you don’t score millions without a proper prototype or product from the Venture Capitalists. Mostly the VC’s look for in a project, whether the team has the ability to run the business & how would they deal with the problems. This sort of analysis is now happening in crypto world too.
With 100’s of ICOs floating every month in the market, you need to carefully assess which ones really have at least a prototype to show to the investors. If they have nothing developed so far, then they will never do it. Not that they won’t intend, but they definitely lack experience. And money will not buy you experience or a dedicated team. You need to build it. I have run many online businesses in my life & first few were failures because I lacked the experience. No matter how much money you invest, if you don’t have the right team then forget about success.
We all want to profit from ICOs & have great return on investment. Investors have become more & more demanding now. They are assessing the projects now throughly. All the ICOs with a product or prototype are surely about to sell out quickly than projects with empty promises from some teenager wannabe entrepreneurs.
So let’s demand from the ICOs, show us a prototype or product. You work really hard to earn this money, so don’t waste it on scam ICOs with no project or product.
Read my other blog articles to find out which ICOs are hot & which are not.