ICOs - Everyone Can Be an Investor! | Blockchain Central

The video explores the differences between Initial Coin Offerings (ICOs) and venture capital (VC) as methods of raising funds for startups. ICOs are a newer, riskier form of investment that involves selling tokens to the public, while VCs involve institutional investors providing funds in exchange for equity. The video discusses the mechanics, history, and risks of ICOs, highlighting their accessibility and potential for high returns, but also their susceptibility to scams and lack of regulation. It concludes with a cautionary note about the risks involved in ICO investments.

What is one of the main reasons ICOs gained popularity?

• They are heavily regulated.

• They offer guaranteed returns.

• They allow startups to raise funds quickly.

• They require large initial investments.

How do venture capitalists typically gain control over a startup?

• By purchasing tokens.

• By investing in the stock market.

• By providing loans.

• By acquiring shares in the company.

What is a key difference between ICOs and venture capital investments?

• Venture capitalists do not seek profit.

• ICOs are generally unregulated.

• Venture capital is open to any organization.

• ICOs require extensive background checks.

Why might some investors choose to participate in an ICO?

• To receive immediate dividends.

• To gain control over the company.

• To support a project they believe in.

• To avoid all financial risks.

What is a significant risk associated with ICOs?

• They are susceptible to scams.

• They have strict regulations.

• They are always profitable.

• They are immune to hacking.