Q1: Can I lose the money I invest?

Yes, you could lose some or all of your investment. Many startups and new projects do not succeed, and there is no guarantee you will get your money back[1][2][3].

Q2: Why do projects sometimes fail?

Projects can fail for many reasons: market demand may be overestimated, the team might struggle to deliver, or unexpected challenges (like competition or regulation) can arise[4][2]. Even with the best intentions, not every idea works out.

Q3: How long will my money be tied up?

Investments in people’s projects are usually illiquid, meaning you may not be able to sell or withdraw your investment for several years—or at all—until a major event like a sale or exit happens[1][2].

Q4: Are these investments regulated or protected?

Most token and startup investments are not covered by traditional investor protections. If something goes wrong, there may be little recourse to recover your funds[2][3].

Q5: What if the project needs more money later?

If the project raises more funds in the future, your share of the project (or your tokens) could be diluted, meaning your percentage ownership becomes smaller[2].

Q6: Do I need special knowledge to invest?

It helps! Understanding the project’s business model, the team’s experience, and the market is important. These investments are riskier if you don’t have time or expertise to evaluate them[1][4].

Q7: Are there risks related to the people involved?

Yes. The project’s success depends on the team’s skills, honesty, and ability to execute. Changes in the team or poor management can put your investment at risk[5][4].

Q8: What about technology or security risks?

If the project uses tokens or smart contracts, there’s a risk of technical bugs or hacks, which could lead to loss of funds or disruption of the project.

Q9: Can regulations change and affect my investment?

Yes. Laws and regulations around tokens and crowdfunding are evolving. Changes could impact the project’s operations or your rights as an investor[4][3].

Q10: How can I reduce my risk?

• Only invest what you can afford to lose
• Diversify your investments (don’t put all your money in one project)
• Research the team, business plan, and market
• Read all risk disclosures and ask questions before investing[6][4]

Remember:

Investing in people’s projects can be rewarding, but it’s important to be aware of the risks and make informed decisions. If you have questions, check our full risk disclosures or contact our team.