IDOs On Cubfinance Not Endorsed By Leofinance Team
There are a lot of people excited about the upcoming Initial DEX Offerings (IDOs) being put out by Cubfinance. This makes sense because it is a huge step forward for the platform.
That said, I think it best that we explore what is the reason for the excitement and the potential pitfalls.
Certainly, there is the potential for some who get in early to make money. That is why IDOs exist. Project teams are looking to raise money and to get that, they have to put together a plan that will reward investors.
The way the IDO platform was designed by the Leofinance team is very beneficial for anyone who is holding CUB. For this reason, I can see why the excitement is running high.
It is the reason why I am thrilled to see the first one kicking off this week.
There is, however, something else going on that I fear is not as positive. Before getting into that, I must state, nothing I post here is a reflection on any single project. Instead, this is merely illustrating what is taking place.
With that out of the way, I wanted to delve into people's view of the ** themselves. There are a lot of people who are putting together monies to get involved. They got excited over the first one and are jumping in.
The challenge with this is do people know what they are getting into? Certainly, there are some very experienced DeFi farmers among us who are well schooled in what is taking place. This is not, in my opinion, the majority.
For this reason I think this needs to be said:
No IDO that is taking place on Cubfinance is endorsed by the Leofinance team. Read that again because it is very important.
Cubfinance is simply providing a service. The Leofinance team contracted with these project teams to brings their IDOs to the market. It is not their job to handle the due diligence of the project or look at the merits of profit potential.
Again, the platform is simply providing a service.
There is little doubt many of us trust the Leofinance team based upon their track record. Sadly, I think people are taking this and applying it to this (and future) IDO. This is a mistake.
It is up to each individual to look at this IDO and judge it for him or herself based upon the merits of what is being offered. I do not believe the Leofinance team is condoning this opportunity is any way.
That does not mean it is a bad project...or a good one. That is up to anyone interested to decide.
My point is do not mistake the fact for it being on Cubfinance as some sign that it is safer than anything else out there. The fact that Leofinance has our trust does not mean that extends to this, or any other, offering.
We each need to research the individual projects on our own and assess the risk we are willing to take. If one decides to get in, then it should be with his or her eyes wide open.
Think back to what happened to most of the ICOs from four years ago. Where are most of those projects today. There are a few we know very well like EOS and SingularityNet. However, most ended up in the waste bin. People basically lost everything they put into it.
That may or may not be the case with each IDO that rolls out on Cubfinance. The Leofinance team is not screening the opportunities for their potential.
Again, Cubfinance is just providing a service.
Even with this stated, I feel certain at some point some will lose money on a deal and claim that thought that because it was being done by Cubfinance that it was somehow a safer deal.
This is not the case.
It is not up to Khal nor the rest of the team to decide what is worthy for investment.
IDOs carry a great degree of risk. There are a lot of unknowns. Be sure you are aware of them before people money into it.
Certainly there is a lot of money that can be made. I hope each one is a stellar success and anyone who puts money in mints a fortune.
The key is to know what you are getting into.
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