Beware of ICOs

ico

Don’t buy the ICO hype! An ICO is an initial coin offering that blockchain startups are using to fund their growth. The problem is that virtual coins are extremely risky investments. This year, ICOs have raised over $500 million in the US and more in China. Speculators can drive up prices by 1000x in a single month.

It’s sheer madness that anyone would buy these virtual tokens issued by unproven startups whose products may not even be successful. It’s a bubble waiting to burst. It’s worse than the 17th century tulip mania, where a single tulip could sell for more than a home.

You might as well go to Las Vegas and play roulette. The odds are better. Eventually, the government will step in and shut many of the startups down, rendering their currencies worthless. Until then, gamble at your own risk.

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