90% of ICOs Are Ponzi Schemes, Making Profits From Them Is Harder Than Winning A Lottery?
Blockchain is important and valuable, distributed ledger technology has been considered as a disruptive technology in various industries. However, a lot of projects just using the name of ‘blockchain’ but actually has involved in Ponzi scheme and other pyramid swindlers which caused many investors to suffer.
Wang Lijie, famous angel investor, co-founder of PreAngel Venture Capital Funds, demonstrated his point of view on the topic of ‘how to identify the Ponzi scheme in blockchain projects’ in the ‘5 masters 5 classes’ WeChat group on the 1st of March.
Wang Lijie said that, in general, blockchain is indeed valuable and there is a big ‘gold mine’ under it but investors need to be patient and focus on value investing. Value creating is the fundamental principle of blockchain investment. The financial assets on the blockchain just entered the new stage of capital explosion, and the regulatory authorities in this area is in the bud.
Due to lack of effective regulation, Ponzi schemes abuse in this market. If we say, the Ponzi scheme for financial products in the traditional financial industry is 10%, in the blockchain world, the situation completely reverses: 90% of ICO projects are Ponzi schemes!
He pointed out that: First of all, there is only small amount of people have actually made profit from it.
Secondly, except for the mainstream cryptocurrencies such as BTH, ETH and NEO, those who can make large profit from investing altcoins, are not so greed. They earned their money, then cashed out while most of the investors are stuck and accompanied by big loss.
People are attracted by schemes of getting rich over night, however, Wang Lijie argues that, people who really make a lot of money by holding the blockchain assets are the very few, the probability is similar with winning a lottery. This is not a game of volume production of millionaires. Here is a high-risk zone and people getting stuck because of their greed, ignorance and laziness.