ICO warns: venture capitalist Fred Wilson has proposed a six-point security investment plan

nnnFred Wilson, co-founder and co-founder of Union Square Ventures, is the author of his own personal experience in this article, saying that most of the coin-sales investors in the current chain sector do not understand ICO, but only blindly follow market trend. However, the risk of doing so, for which he made a reference to the six recommendations, to avoid the risk of fraud.n
nnTranslation: Annie_Xun
nSenior venture capitalist Fred Wilson warned that ICO potential investors should not be “greedy” because the market continues to expand.n
nWilson’s blog is seen by a lot of people as a novice’s pertinent advice, calling for consideration when participating in tokens sales projects.n
nn”The current heat of the encrypted assets makes me very worried that no one is careful about anything.”n
nnThe encrypted money market is now flooded with the ever-expanding ICO, and even because of the unprecedented heat of investing in Tathco, two of which have led to network instability.n
nDespite the need to protect the technical process, Civic’s tokens have developed a number of measures; while Status Sales has been criticized for the “plug” network.n
nWilson warned, “I remember the 90s friends buying hot Internet IPO products.”n
n”I will ask them why they want to invest; they will say to me, ‘I heard that it is a hot business.’ I would say, ‘But what did your investment company do?’ They would say, ‘I do not know But I know I will make a lot of money ‘.n
nWilson emphasizes six areas that must be considered, including fraud and “feeling like scam”.n
nHis company, USV (Union Square Ventures), regularly invests in block chain projects.n
nn”We are investors of the denomination fund, and I believe that we will start to buy the tokens directly, so we think the encrypted currency will add value.”n
nnn”However, there are a lot of things in the field that we can not agree with.”n
nThe chain pencil (chainb.com) specifically translated Fred Wilson for the reader’s reference.n
nBuyer Noticen
nnTwitter suggested the following questions:n
nIs there a common ground between ICO and private investment?n
n- Daniel Olshansky (@olshansky) June 13, 2017n
nI was so answered:n
nYes, but please note. Do homework, do not be too greedy.n
n- Fred Wilson (@fredwilson) June 14, 2017n
nOn this topic, I can talk a lot, and I decided to do so.n
nWhether you are a venture capitalist who buys private equity securities or an encrypted currency lover who buys ICO tokens; the following are all you must be careful. Now the heat of the encrypted assets makes me very worried that no one so carefully treated all related matters.n
nSo the next time involved in ICO, need to consider the following:n
n1, the amount of financing is very important. Often, more money is not a good thing. Not long ago, I wrote a related blog. My experience is that the entrepreneurial company that prudently prudently fosters a reasonable venture is better than a fervent financing start-up company. I will focus on projects with the upper limit of ICO and the appropriate amount of money. The team should raise enough money to do what they want to do; but $ 10 million can do a lot of things, $ 50 million can do a lot of things. The stacking of $ 10.5 million was raised, and the price of Bitcoin fell as a result of the loss. Look at what they can do with this money.n
n2, you must understand what the issue of tokens can do, on behalf of how the size of the token on behalf of a certain degree of judgment. “I remember the 90s friends buying hot Internet IPO products. I asked them why they wanted to invest”; they answered me, “I heard it was a hot business.” I said, “but what did the company you invested to do?” They said, “I do not know, but I know I will make a lot of money.” This investment is silly. Smart point, understand what you want to buy, why buy If you can not hold the investment product until the tokens get real use and value; you may need to think twice before buying.n
n3, the valuation problem. I know that many people in the field of entrepreneurs do not agree with my point of view. Some venture to seize the good investment opportunities, but do not care how much money to pay for this. As an investment strategy may be feasible, but need a lot of good luck and market opportunities. On the other hand, if you are able to invest in valuation, invest in a reasonable price to buy the investment product, assess why and why the investment product to grow to 10 times the value of five years; then the possibility of considerable income is even greater. Some people in the field of encrypted money are building valuation models. You should follow them and understand their work. You have to try to use this thinking in encrypted money investments.n
n4, to avoid fraud and feel like a fraud thing. Fraud is not limited to the field of encrypted money. They exist in various investment models (and many other areas). As a venture capital firm, we often get some risky investment opportunities; you quickly learn to delete these messages, do not reply to these calls. However, the emerging areas of encrypted currency and other areas of lack of supervision, review, to reconcile the knowledge, fraud is more and more common. The field has a lot of public fraud, I bet that the successful financing of the ICO, may finally be found to be fraud. There is a difference between intentional fraud and accidental scams, but if you are an investor, in either case you are cheated. Be alert to fraud and avoid them. The best signal of fraud is the lack of technical details, do not know how to operate, the project team lack credibility. Make sure that the technology and project team are credible before investing in funds.n
n5, looking for technical details of the project. Venture capital firms are more likely to invest in companies with actual usable products. I am bold to guess that more than 80% of the future USV investment will favor these companies. You can use Bitcoin, you can use ether coins, you can use Steem, you can use zcash. Has a wide range of applications with full-featured cryptographic assets. But it does not mean that they will succeed, but it does give you more confidence in success. Investing in a white paper is more risky than investing in the available technology you can use.n
n6, do not greedy. This applies to buyers and sellers on the market. You may be able to make a fortune for the time being. But I suggest you restrain your impulse. Those regular customers in the market may be able to do well, but it is always a bad idea to get rich all night. So, for the seller, it means a reasonable amount of financing, rather than the maximum grab. And gradually sell more products to the market, as Vitalik recently blog said:n
n”If we want to hit the core of the problem, how can we solve it? I would say that the answer is simple: start to develop investment mechanism, rather than using a round of sales for buyers, this means that do not put all their money on An ICO project, or even put all the money into an encrypted currency. The market can collapse. You need to manage the risk of diversified products, especially the volatile market.n
nFor the past six years, I have been an enthusiastic supporter of Bitcoin, Block Chain and Encrypted Token, and a long-term believer in the field. USV invests in this industry. We are the investors of the tokens, and I am sure that we will buy the tokens directly and watch the money market.n
nHowever, many projects in the field are not recognized at present. We have been investing in start-up companies and emerging technologies for three decades. I have seen this scene before. We know how it will start, know that everything is not always upward to the direction of the development.n
nWhen people are afraid, greed a little bit. When people are greedy, they are timid. At present we are closer to the latter case of encrypted money. Although we are not worried about our own and USV investment in the field; but I worry about the field and now the most greedy of those people. I warn us that the investment object is careful, we are also careful to act. I suggest that everyone else do the same.n

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