An Initial Coin Offering gave startups a way to raise capital outside traditional venture funding. It also made it possible for projects with weak plans, unclear ownership or unrealistic promises to attract attention.
Common failure points
- A product is promised before a genuine customer problem is understood.
- Token economics are confusing or disconnected from utility.
- The team cannot explain how funds will be used.
- Security, compliance and governance are treated as afterthoughts.
Due diligence means reading the technical plan, checking the team and asking what would still be valuable if the token price fell.