Living Smart

016 017 I ENGINEERING & TECHNOLOGY the “Big Four” accounting firms, found that 71 percent of the ICO projects launched in 2017 failed to introduce any product to the market, and failed to raise capital or refund investors. Some even disappeared. Furthermore, China banned ICOs in September 2017, while the US Securities and Exchange Commission has been looking more closely into both fraudulent and proper ICOs in recent months. Before investing in ICOs, individual investors should scrutinize cautiously for unsubstantiated statements, examine their proven investment track records, beware of over-optimistic information, and ensure they understand everything they are told. They must also consider why an ICO would like to acquire capital from individuals instead of traditional venture capital or private equity, which would provide professional guidance, sufficient funding and solid credibility. Is it because the current regulations on ICOs are lax or even non-existent? Given ICOs’ highly risky nature, one must expect to shoulder a 90 percent if not 100 percent loss of one’ s investment. Investing in ICO projects without the relevant expertise to evaluate and understand one’ s commitment is similar to handing over cash to a total stranger in the street who solicits money from you for an imaginary lucrative project. Average individual investors must ask themselves if they are ready to be involved in such high-risk business endeavors. Published on January 23, 2019