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Investing in the past

• Investing into low mcap coins was a great way to make crazy returns in 2017.

• Low mcap altcoins would make amazing gains - 10x - 100x wasn't that uncommon in 2017 where there was crazy amount of hype due to ICO popularity

• At this stage many projects were in development phase so mostly the investment were performed based on hype and the potential

• However 2 years later many of these projects should start delivering results because they had enough development time. Are they delivering?

Reality

Users - from individuals to large energy buyers, investors and traders - will now be able to create accounts, browse through the first renewable energy auctions available on the platform, and express their interest to participate.

• This leads us to the current situation where 2 years it is time for those projects that raised millions of dollars to start delivering results

• The reality is different - many projects are being abandoned because they lost all of the funds either through mismanagement or simply because the money was spent on other stuff.

• As a result majority of low mcap ICO projects are at risk of running out of money and abandoning the projects as a result.

• Abandoning project obviously means that the price of the tokens goes way down and the invested money is lost.

Recent examples

• Thor token shut down after burning through the funds and also claming that they ran into many regulatory challenges while operating that prevented them from achieving what we set out to in our white paper. What is interesting is that Thor supposedly raised $21 million during their ICO, which ended on April 2018 but the CEO David Chin says the reported figure is closer to $2M

• RepuX raised the funds ($4.7M) to build a “blockchain powered data market place,” while JoyToken ($3.3M) was developing a decentralized gambling platform. A quick research of the blockchain companies also shows close ties between the two to the point where it could be assumed that both were run by the same company and were scams from the beginning.

Recent examples 2

• The exchange Cobinhood is still operational butt has been dealing with controversies and issues. The company has suspended in late May due to disputes between shareholders there were also layoffs. While exchange is still operational it has also faced some technical issues. All of that tanked the token price.

• Aphelion on the other hand was completely closed as annouced by CEO. The project was a decentralised exchange built on NEO but the volume is so low that they ran out of funds. There was a research published on Medium which pointed out that the CEO has been dumping tokens and living expensive and glamourous life in Bali, Indonesia which would point out that it has been a scam from the beginning.

Conclusion

• There were plenty of other examples where ICOs turned out to be obvious scams for example: Prodeum, Plexcoin, Benebit, Centra, Onecoin, Pincoin and many many more.

• On top of that a lot of legit projects could also run out of money due to painful bear market.

• All of that means that investing with smaller projects that do not yet generate any income is extremely risky. This means that as an investor you have to consider the risk/reward ratio with less popular projects.

• Since this is not 2017 I personally would avoid investing into those. If you want more risky projects but ones that still have huge potential look into top 100 (BAT/ICON/Enjin/WAX projects like these)