ICOs - Everyone Can Be an Investor!

The video explores the differences between Initial Coin Offerings (ICOs) and venture capital (VC) as methods of funding startups. ICOs are a new, unregulated form of raising money through cryptocurrency tokens, offering immediate funds but with high risks and potential for scams. In contrast, VC involves institutional investors providing funds in exchange for equity, with more control and due diligence. The video also highlights the history of ICOs, particularly Ethereum's role, and discusses the pros and cons of each funding method.

What is one of the main risks associated with ICOs?

• Lack of control over information disclosure

• Limited investor interest

• Slow funding process

• High regulation

How do venture capitalists typically gain control over a startup?

• By providing loans

• By acquiring shares in the company

• By offering consulting services

• By purchasing tokens

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

• Venture capitalists do not perform due diligence

• ICOs are generally unregulated

• Venture capital is open to any organization

• ICOs require a minimum investment

Why might some investors choose to participate in an ICO?

• To receive immediate dividends

• To support a project they believe in

• To gain control over the company

• To avoid all risks

What is a potential downside of investing in ICOs?

• Limited market access

• Guaranteed returns

• High regulation

• Susceptibility to scams