To Invest or NOT to Invest in ICOs?

Just do a quick search on Medium using the following words “invest in ICO” and zillions of articles will pop up. Some will tell you don’t invest because the chances of getting ripped off are too high if you account for what happened with the 2017 ICO scams. Others will offer you advice on how to choose a good ICO to invest in using a traditional checklist. A bunch of “Beginner’s Guides to Investing in ICOs” will tell you everything you must know to reduce your risks.

From token analysis to website presentation, whitepaper, lightpaper, online communities, media coverage, team members and their experience, listing websites, star investors and so on, you’ve heard them all. I know we did too!

What most seem to forget though is that the one resource wealthy and important investors lack is time. As Benjamin Franklin put it in his “Advice to a Young Tradesman” (1748):

Remember that Time is Money. He that can earn Ten Shillings a Day by his Labour, and goes abroad, or sits idle one half of that Day, tho’ he spends but Sixpence during his Diversion or Idleness, ought not to reckon That the only Expense; he has really spent or rather thrown away Five Shillings besides.

In microeconomic theory, they call it the opportunity cost. When it comes to Blockchain and Crypto projects, time is key and the opportunity cost of staying too much on the side bench becomes the opportunity lost. But being a smart investor means diversifying your portfolio and pumping money into projects that can bring real results. And to become a smart investor in the world of crypto, most people would say you should be ready to do your due diligence and make sure the ICO you’ll venture into is going to deliver. However, most innovative technologies and developments in high-end industries cannot always be explained in 15 seconds of animated presentation videos. Some require quite a lot of previous knowledge on very specific topics. You could, of course, go through a 150-page whitepaper and try to assess if it’s worth it or not.

We’re here to tell you not to do that. It’s OK if you don’t understand all the technology behind a project. In fact, most investors often don’t. They sometimes just trust the idea or maybe the brain behind it. And that’s fine, but there’s still no guarantee of success.

We will tell you not to get rid of the middlemen. A lot of people say this is what blockchain should be about, escaping intermediaries and letting transactions happen between 2 parties. As we’ve recently seen, these agreements often fail. But we can do something about it. We can let the blockchain decide if a project deserves a second and a third financing round based on actual results. We can let you better control your venture.

At Daicore, we’re not promising 0 risks. That is impossible and any real investor knows it. What we do promise is that the projects listed on our platform will have all the incentives to deliver, because their cashflow depends on that. We’ll also do the screening for you and we’ll make sure all the projects are legit. We care about our reputation and we also care about your time. You should too!


To Invest or NOT to Invest in ICOs? was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.