Understanding the risks of sales of ICO and tokens: Warning Story

The rise of the cryptocurrency led to an increase in the initial coin (ICO) and the sale of tokens, which were pointed out to a new era of decentralized finances. However, the Humbuku is the network of risks that investors should be aware of before they throw themselves into this exciting space. In this article, we dive deeper into the world of sales of ICOs and tokens, examine the possible traps and provide guidance on how to orient ourselves to this unknown area.

What are ICO sales and tokens?

The initial offer of names (OIC) is a mechanism for increasing resources in which an individual or society creates a new cryptocurrency or token and problems for the public in exchange for investment. This process usually includes a set of conditions that must be met before sales, including regulatory approval, security measures and disclosure requirements.

The sale of tokens, on the other hand, is another type of mechanism for increasing resources in which investors buy chips from a issuing company or individual used to buy goods or services. Tokens are usually lacking the same level of regulation as ICO, making them more susceptible to handling unscrupulous operators.

Risks associated with ICO sales and tokens

Although sales of ICO and tokens have the potential to generate significant income for investors, there are several risks with this space:

1.

• Security risks : Decentralized nature of Blockchain technology makes hackers and computer attacks vulnerable, which can lead to significant financial losses.

3.

• Lack of transparency : The sale of token usually does not have transparency, so it is difficult to verify the legitimacy of the offer.

5.

Common ICO and tokens sales types

There are several types of ICO sales and tokens that should be aware of investors:

1.

• Security Token (STO) : STO is similar to ICO, but include the sale of security tokens that represent the property in the assets or activities of the company.

3.

how to protect yourself

Although there are risks associated with the sale of OICS and token, investors can take steps to protect themselves:

1.

• Check compliance with the regulatory regulations : Check that the issuer has met all the necessary regulatory requirements before continuing the resource capture mechanism.

• Understand Tokenomics : Get to know the symbolic economy and understand how tokens can be used in different contexts.

• Diversify your portfolio : Do not put all your eggs in the basket, as sales of ICO and token are inherently volatile markets.

Conclusion

Although the world of cryptocurrencies is exciting and rapidly developing, investors should turn to ICO and careful sale of tokens. Investors can understand the potential risks associated with these mechanisms of increasing resources and doing business steps to protect themselves, investors can orientate safer in this unknown area. Remember that it is always better to make a mistake when investing in new markets.