How Much Are You Willing to Lose Investing in ICO Startups?

Even with the Korean government banning ICOs in Korea, there are a lot of investors that want to invest in ICO startups.  Many Korean companies and startups are looking outside of Korea to start their ICOs.  Many of these ICOs are a risky investment much like cryptocurrencies as a whole.  So when investing you need to ask yourself just how much money you are willing to lose?  There have been many stories in Korea of investors losing all their money investing in ICOs or cryptocurrencies.  There are even been stories of suicide because of the huge loses in these ICO projects.

Investing or Gambling?

At the end of the day investing in ICOs is very similar to gambling.  However not like blackjack where you have close to a 50/50 shot at winning but rather much like roulette.  The odds are heavily stacked against you but you hear news of people striking it rich, however, you don’t hear the news of people losing their savings.

What these ICOs remind me of are those penny stocks sold by shady wall street brokers.  Therefore it is important to minimize against big losses by looking for projects that give tokens out right away and will go on the exchange very soon.  That way your investment is still liquid.  Also, see how much money these founders of ICO startups have put into the company.  If they are heavily invested that is a good sign.  They are not going anywhere and will try their very best to make the project a success.

John Yoon

John Yoon is the Editor in Chief at Startup Radar, Organizer for Startup Festival 2017, Head of Operations Korea at EOS Asia and the Global Marketing Director for Foresting.io. Email = john@startupradar.asia if you are interested in guest contributing and helping the Korean startup ecosystem. Wechat, Kakao, and Line user ID is jswy315

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