What are the risks of investing in an IEO?

home blog
General info
What are the risks of investing in an IEO?
by APECoin Official June 05, 2020

IEO is a rising star and the digitally inclined minds are queuing up just to avail. It is believed that the higher the investment to avail, the greater the risk associated with it, specially that IEO is open to any platforms.

  1. Price risk
  2. Risk of exchange
  3. Risk exchange token for purchase
  4. Unreliable IEO

Price risk

IEO is quite similar with ICO as it has a clean road map and so on & so forth. Well, the success of the project depends on the capacity of the developers. How well they manage it speaks for itself when the price spikes up 10x or more, tendency is that the project is successful.

Risk of exchange

As of this time, only few exchanges releasing IEO. More will surge in the coming months. When there are only few, the charges are expected to be high. On the contrary, when there are too many to choose from, the charges of course are much lower. But should take into consideration the reliability of the exchange itself. Weigh all the possibilities when choosing one.

Risk exchange token for purchase

Before the fundraising activity, the price of tokens is increased due to higher demands. Investors have no choice but to buy since token is needed to buy in IEO. After the activity, most of the investors will sell their tokens instead of buying. This calls for a reduced in token price exchange. Or maybe some investors will wait for the next fundraising activity, at least not losing a lot.

Unreliable IEO

It is understandable that when there are too many IEOs, we can classify them as either good or bad. Which means, the good ones are reliable enough that you can invest without headaches. But remember, at times it looks too good to be true that you will be fooled in the end. Be extra careful. While, the bad ones are those completely and obviously unreliable IEO. Constant update by reading and researching will enhance your skills in choosing the right platform.