The world has gone crazy for ICO in these two months. Great fortune was made but it can just be another crisis in the 21st century. We have seen similar scenarios in 2001, when people gone mad about Internet and all its related products. That time, you can establish a business and your stock price would skyrocket by 1000%, as long as your company's name include anything about Internet.
Today's ICO madness reminds me of that painful experience 16 years ago. To be honest, people nowadays never try to understand the concepts behind the cryptocurrencies. All they are thinking is the possible 1000% return which was seen in cases like Bitcoin and Ethereum. They all wanted to become rich in one night. I understand that feeling as I was once part of them. It is for sure that a few percentage of ICO projects give some fantastic ideas that can really back up the value of their tokens. However, we have also seen many cases that the owner disappeared right after the ICO ended (and it is becoming more common in China).
All I am suggesting is that:
- Make sure you understand the concepts of the ICO projects before participation
- Assess your risk tolerance level before the investment. Prices can be volatile and you may lose all in just a few minutes.
These may seem easy and cliche but it is always difficult to stand aside in a bullish market. Sometimes, giving up leads you a better ending than following. Like what Warren Buffett has said: 'Be Fearful When Others Are Greedy and Greedy When Others Are Fearful'
It is time to be fearful and you will thank me later for telling you this.
p.s. I am trying to post a story everyday, to share some of my views and suggestions. Feel free to follow my account and comment below.