High return potential: Some ICOs can offer extremely high returns to early investors:
- Potential for high returns: Some ICOs have delivered extremely high returns to early investors. For example, the price of Ethereum's token (ETH) rose from around $0.30 at its ICO in 2014 to over $1,400 in 2018, representing a return of over 4,600%.
- Access to new technologies: ICOs can provide investors with an opportunity to gain exposure to new technologies and projects that may not be available through traditional investment channels.
- Diversification: Investing in ICOs can provide diversification for an investment portfolio, as the cryptocurrency market is uncorrelated with traditional asset classes.
- Liquidity: Some ICOs allow investors to sell their tokens on cryptocurrency exchanges, providing liquidity for their investment.
It's worth noting that investing in ICOs carries significant risks, and many ICOs have resulted in significant losses for investors. Investors should carefully consider the risks before investing in any ICO.